If We Were a Game Of Monopoly
Posted on November 24, 2008
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Fed to add $7.4 trillion dollars to the system
Nov. 24 (Bloomberg) — The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago.
The unprecedented pledge of funds includes $2.8 trillion already tapped by financial institutions in the biggest response to an economic emergency since the New Deal of the 1930s, according to data compiled by Bloomberg. The commitment dwarfs the only plan approved by lawmakers, the Treasury Department’s $700 billion Troubled Asset Relief Program. Federal Reserve lending last week was 1,900 times the weekly average for the three years before the crisis.
Imagine that we were like a game of Monopoly and the bank ran out of money, when you pass go you’re not able to collect $200 because the bank doesn’t have anymore money to give you. While this could have happened because your sister decided she was going to steal the $500’s and pass them off as her own the bottom line is that there’s no more capital to give. The more money you create in the game to give the people who pass go $200 the less money that money is worth. When the game starts you couldn’t imagine owning boardwalk, you simply can’t see a clear path to earning it, as the game goes on it becomes more and more apparent that $400 is but a drop in the hat. Monopoly sets the initial price for a property, say $400, but as the game goes on that property has a trade in value that’s always changing. That value is always going to go up if you throw more money in the game, you wouldn’t sell boardwalk for $500 when the person trying to buy it has $10,000 and you half that.
It’s an added tax on our already failing dollar, we can’t keep adding more currency and expect that the natural resources are going to catch up. It’s completely unsustainable to have this much wealth circulating through our system, especially all at once. It’s the same reason why oil spills are far more toxic to the environment than the natural oil that seeps through the ocean floor. The saddest thing is no elected official has control over this $7.4 trillion dollars we’re throwing into the system, the only purpose it’s going to serve is to keep the rich rich.
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