A Very Simple Concept
Just a like a ball lock pins all stuck together and not coming undone, so is the so-called bailout package. So will come inflation.
Inflation is the one thing that kills more people who have some savings then anything else.
As an example, let us say that we have a particlar type of object that we all deem is worth $100. There are 1,000,000 (one million) of these items. The rate stays constant. Sometimes it is worth 105 sometimes 95. Now what happens if we all of a sudden fine 1,000,000 more of these items. The value falls to $50 each.
Why does this happen? Because there are more of the item around causing the percievd value to drop.
This is what will happen when we print 1,000,000,000,000 (one trillion) new dollars.
Inflation is the one thing that kills more people who have some savings then anything else.
As an example, let us say that we have a particlar type of object that we all deem is worth $100. There are 1,000,000 (one million) of these items. The rate stays constant. Sometimes it is worth 105 sometimes 95. Now what happens if we all of a sudden fine 1,000,000 more of these items. The value falls to $50 each.
Why does this happen? Because there are more of the item around causing the percievd value to drop.
This is what will happen when we print 1,000,000,000,000 (one trillion) new dollars.
posted by The Isaac Group @ 8:52 PM
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