Playing Monopoly

Let us ask you something.  What if you were playing Monopoly with your friend and you own Boardwalk with a hotel on it.  During your friend's roll, he lands on Boardwalk but doesn't have enough money to pay you.  You win, right?  But, what if he cracks open another Monopoly game and uses the money from it to pay you with? 

Our Treasury is doing that exact same thing.  Our government does not have enough money for services, the "stimulus plans" and to pay its debt.  The solution?  Turn on the presses and print more money.  Problem solved, right?

Every dollar printed lowers the value of every dollar already in circulation.  To control inflation, the Feds must raise interest rates in order to shrink the amount of money in the economy.  This action results in less lending, and essentially the economy slows, money is taken out of the system and everything equals out.  Normally.  But these are not normal times.  If the Feds were to do this, the economy will grind to a halt. 

The Wiemar Republic in Germany did this printing money trick after WWI to pay off their war reparations to the Allies.  Can you imagine taking a wheelbarrow to the store to get a loaf of bread?  It's not going to get that bad here but inflation is just around the corner.


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