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bailout money


bailout money26-03-2020 02:38
keepit
★★★★☆
(1220)
I'm not sure the bailout money is as costly as people think.
After all, according to AARP, money disbursed by the govt comes back to the govt in taxes at a rate of almost 98% of the amount disbursed or thereabouts. That includes all kinds of taxes including state income taxes.
Since the economy is shut down, value is not being created. I think that means that even though the bailout gets disbursed, the amount of money in the economy is similar to the case where it didn't get disbursed. It's just that useful product isn't created. Less co2 is created however. Inflation may result but that is a big if. Economists are uncertain why there hasn't been more inflation during the time of increasing national debt.
Edited on 26-03-2020 02:47
26-03-2020 04:25
Into the NightProfile picture★★★★★
(11753)
keepit wrote:
I'm not sure the bailout money is as costly as people think.
After all, according to AARP, money disbursed by the govt comes back to the govt in taxes at a rate of almost 98% of the amount disbursed or thereabouts. That includes all kinds of taxes including state income taxes.
Since the economy is shut down, value is not being created. I think that means that even though the bailout gets disbursed, the amount of money in the economy is similar to the case where it didn't get disbursed. It's just that useful product isn't created. Less co2 is created however. Inflation may result but that is a big if. Economists are uncertain why there hasn't been more inflation during the time of increasing national debt.

Someday you'll learn something about economics and the role of the Fed. You might also finally learn the laws of thermodynamics that says CO2 cannot increase the temperature of Earth.


........Nah.


The Parrot Killer
26-03-2020 04:47
IBdaMannProfile picture★★★★★
(6253)
keepit wrote: I'm not sure the bailout money is as costly as people think.

Most people realize that the bailout will be exactly as costly as the total bailout package.

keepit wrote: After all, according to AARP, money disbursed by the govt comes back to the govt in taxes at a rate of almost 98% of the amount disbursed or thereabouts.

We the People aren't elated by the government having more money. We the People want *us* to have more wealth. I would rather be rich and have the government tighten its belt than for the government to be swimming in cash while I tighten my belt.

I recommend you politely ask Into the Night to explain to you how EVERYBODY becomes instantly poorer whenever the value of currency drops ... and how the value of the dollar drops every time more dollars are printed. The bailout package will make everyone poorer so as to make the government wealthier.

This is very bad.

keepit wrote: Since the economy is shut down, value is not being created.

There is an easy fix. Would you care to guess what that is?


.


Sea level varies from place to place in the world - keepit

Clouds don't trap heat. Clouds block cold. - Spongy Iris

Printing dollars to pay debt doesn't increase the number of dollars. - keepit

If Venus were a black body it would have a much much lower temperature than what we found there.- tmiddles

Ah the "Valid Data" myth of ITN/IBD. - tmiddles

Ceist - I couldn't agree with you more. But when money and religion are involved, and there are people who value them above all else, then the lies begin. - trafn

You are completely misunderstanding their use of the word "accumulation"! - Climate Scientist.

The Stefan-Boltzman equation doesn't come up with the correct temperature if greenhouse gases are not considered - Hank

:*sigh* Not the "raw data" crap. - Leafsdude

IB STILL hasn't explained what Planck's Law means. Just more hand waving that it applies to everything and more asserting that the greenhouse effect 'violates' it.- Ceist
26-03-2020 04:52
keepit
★★★★☆
(1220)
IBD, You do realize, don't you, that the dollar index has been going up lately. It may not last though.
26-03-2020 05:06
Into the NightProfile picture★★★★★
(11753)
keepit wrote:
IBD, You do realize, don't you, that the dollar index has been going up lately. It may not last though.

The dollar index is meaningless. It's only value is to relate the dollar to other paper currencies, equally controlled by other various governments, and equally not tied to any commodity.

Still battin' 0.00, keepit.


The Parrot Killer
Edited on 26-03-2020 05:06
26-03-2020 05:13
IBdaMannProfile picture★★★★★
(6253)
keepit wrote: IBD, You do realize, don't you, that the dollar index has been going up lately. It may not last though.


It's going down.

23 March 2020: 103.51
24 March 2020: 102.07
25 March 2020: 100.92

The bailout will not help the value of the dollar.


.


Sea level varies from place to place in the world - keepit

Clouds don't trap heat. Clouds block cold. - Spongy Iris

Printing dollars to pay debt doesn't increase the number of dollars. - keepit

If Venus were a black body it would have a much much lower temperature than what we found there.- tmiddles

Ah the "Valid Data" myth of ITN/IBD. - tmiddles

Ceist - I couldn't agree with you more. But when money and religion are involved, and there are people who value them above all else, then the lies begin. - trafn

You are completely misunderstanding their use of the word "accumulation"! - Climate Scientist.

The Stefan-Boltzman equation doesn't come up with the correct temperature if greenhouse gases are not considered - Hank

:*sigh* Not the "raw data" crap. - Leafsdude

IB STILL hasn't explained what Planck's Law means. Just more hand waving that it applies to everything and more asserting that the greenhouse effect 'violates' it.- Ceist
26-03-2020 17:44
keepit
★★★★☆
(1220)
IBDM,
It may go down, or not. Two days does not make a trend however. Automation is fighting inflation. The financial damage that is happening will also retard inflation.
26-03-2020 18:29
IBdaMannProfile picture★★★★★
(6253)
keepit wrote: Two days does not make a trend however.

Yes it does. You are still batting 0.000

keepit wrote: Automation is fighting inflation.

Technological advancement , not automation, fights inflation.

keepit wrote: The financial damage that is happening will also retard inflation.

Financial damage increases price gauging and fuels inflation.


.


Sea level varies from place to place in the world - keepit

Clouds don't trap heat. Clouds block cold. - Spongy Iris

Printing dollars to pay debt doesn't increase the number of dollars. - keepit

If Venus were a black body it would have a much much lower temperature than what we found there.- tmiddles

Ah the "Valid Data" myth of ITN/IBD. - tmiddles

Ceist - I couldn't agree with you more. But when money and religion are involved, and there are people who value them above all else, then the lies begin. - trafn

You are completely misunderstanding their use of the word "accumulation"! - Climate Scientist.

The Stefan-Boltzman equation doesn't come up with the correct temperature if greenhouse gases are not considered - Hank

:*sigh* Not the "raw data" crap. - Leafsdude

IB STILL hasn't explained what Planck's Law means. Just more hand waving that it applies to everything and more asserting that the greenhouse effect 'violates' it.- Ceist
26-03-2020 19:30
James___
★★★★★
(2420)
keepit wrote:
IBDM,
It may go down, or not. Two days does not make a trend however. Automation is fighting inflation. The financial damage that is happening will also retard inflation.



I read one story where a Texas billionaire (Tillman Ferrita) was worth $5 billion and now is worth only $3.3 billion. They didn't say what his monthly income was or what his personal monthly budget is.
It's possible that he's so rich that his income is still much more than what it costs him to live on. And this goes back to Reagonomics and his Trickle Down economics If the rich people aren't spending the money they make, then it's not going back into the economy.
This in turn can cause an economy to contract if the government doesn't increase its spending.
26-03-2020 19:47
Into the NightProfile picture★★★★★
(11753)
keepit wrote:
IBDM,
It may go down, or not. Two days does not make a trend however. Automation is fighting inflation. The financial damage that is happening will also retard inflation.


A single storm makes a 'trend' for you. You are now locked in paradox. Which is it, dude?

Financial damage does not retard inflation.

Still batting 0.00.


The Parrot Killer
26-03-2020 20:16
keepit
★★★★☆
(1220)
I don't think there's going to be enough money in the economic system in the next several months to fuel inflation. It depends on how much money the fed and the treasury is willing to cut loose.
True, later there may be inflation but there needs to be a solution for the immediate future. Inflation is complicated. It hasn't been happenng and it's not clear why. It may not happen in the future and it might not be clear why.
During the great depression there wasn't inflation to my knowledge but of course, the fed and the treasury weren't producing money.
Bottom line --- who knows?
26-03-2020 20:38
gfm7175Profile picture★★★☆☆
(424)
Still batting 0.000

You are completely illiterate in logic, mathematics, and economics.
26-03-2020 20:47
IBdaMannProfile picture★★★★★
(6253)
keepit wrote: I don't think there's going to be enough money in the economic system in the next several months to fuel inflation.

Where do you believe money is going to go?


.


Sea level varies from place to place in the world - keepit

Clouds don't trap heat. Clouds block cold. - Spongy Iris

Printing dollars to pay debt doesn't increase the number of dollars. - keepit

If Venus were a black body it would have a much much lower temperature than what we found there.- tmiddles

Ah the "Valid Data" myth of ITN/IBD. - tmiddles

Ceist - I couldn't agree with you more. But when money and religion are involved, and there are people who value them above all else, then the lies begin. - trafn

You are completely misunderstanding their use of the word "accumulation"! - Climate Scientist.

The Stefan-Boltzman equation doesn't come up with the correct temperature if greenhouse gases are not considered - Hank

:*sigh* Not the "raw data" crap. - Leafsdude

IB STILL hasn't explained what Planck's Law means. Just more hand waving that it applies to everything and more asserting that the greenhouse effect 'violates' it.- Ceist
26-03-2020 20:57
James___
★★★★★
(2420)
keepit wrote:
I don't think there's going to be enough money in the economic system in the next several months to fuel inflation. It depends on how much money the fed and the treasury is willing to cut loose.
True, later there may be inflation but there needs to be a solution for the immediate future. Inflation is complicated. It hasn't been happenng and it's not clear why. It may not happen in the future and it might not be clear why.
During the great depression there wasn't inflation to my knowledge but of course, the fed and the treasury weren't producing money.
Bottom line --- who knows?



I think they went about the bailout wrong. They should've identified which businesses are hurting because of this. And this would exclude businesses like casinos. The billionaire said that is good to go for several moths.
And as for people, maybe increase unemployment benefits for laid off workers.
Then when it's safe for life to get back to normal, businesses could recall laid off workers.
It's like with airlines, payments on their planes to finance companies could be placed at the end of their leases and this could be done for everyone else affected by that.
For home owners, their mortgage payments likewise could be moved to the end of their mortgage. This would have minimized the amount of the bailout.
And in the future, the country might need to be ready for a 3 week shut down and that would be possible if our country is prepared for it. This response could take a year or more as they expect successive waves of the corona virus.
And in the future, people could should stockpile N95 masks and nitrile gloves. That could negate the need for businesses to close for 2 to 3 weeks to give the medical people time to identify the infected.
26-03-2020 21:02
keepit
★★★★☆
(1220)
There's going to be less money circulating in the next few months. The other side of the coin is ... how much goods and services are going to be produced. Those are the main drivers of inflation i think.
As far as i know, financial damage does retard inflation. The other side of that is ... how much money is coming from the fed and treasury?

A suspension of all interest accrual might be helpful but then some people live on interest accrual.
Edited on 26-03-2020 21:07
27-03-2020 02:04
Into the NightProfile picture★★★★★
(11753)
keepit wrote:
I don't think there's going to be enough money in the economic system in the next several months to fuel inflation.

The same money that is in thye system is still in the system. Raising M1 puts more money in the system. Inflation is not fueled by money. It is fueled by more dollars chasing the same wealth.
keepit wrote:
It depends on how much money the fed and the treasury is willing to cut loose.

Nope. it depends on how fast wealth is being created vs how much money is put into the system.
keepit wrote:
True, later there may be inflation

There WILL be inflation from this. Wealth is not being created fast enough to accept this kind of printing of money.
keepit wrote:
but there needs to be a solution for the immediate future.

This is not a solution.
keepit wrote:
Inflation is complicated.

Apparently it is for you. Still batting 0.00.
keepit wrote:
It hasn't been happenng and it's not clear why.

It has been happening.
keepit wrote:
It may not happen in the future and it might not be clear why.

It WILL happen in the future. The government is out of options. They are broke.
keepit wrote:
During the great depression there wasn't inflation to my knowledge but of course, the fed and the treasury weren't producing money.

YES THEY WERE. Worse, the constantly changing whims of people like President Hoover and FDR made the great depression great. FDR also eventually just stole the gold from the people.


keepit wrote:
Bottom line --- who knows?

Apparently YOU don't. Still batting 0.00.


The Parrot Killer
Edited on 27-03-2020 02:05
27-03-2020 02:15
keepit
★★★★☆
(1220)
ITN says, "the same money that is in the system is still in the system".
I see your point but there are two things here.
1 - why are people going broke if the money is still there?
2 - money in the system goes back to the fed when debts are paid to banks, who then pays the fed.
The fed has to redistribute the money to some degree or the money supply will shrink.
27-03-2020 04:30
GasGuzzler
★★★★☆
(1641)
keepit wrote:
why are people going broke if the money is still there?


Overspending on toilet paper?


gasguzzler, calling the jet stream the "Norwegian jet stream" is a bigoted statement. -James-
27-03-2020 17:03
keepit
★★★★☆
(1220)
gfm,
You say i lie and i'm illiterate.
Is there a problem?
27-03-2020 18:10
gfm7175Profile picture★★★☆☆
(424)
keepit wrote:
gfm,

That's me.

keepit wrote:
You say i lie and i'm illiterate.

Yes, because you regularly lie and are illiterate in the fields that I mentioned earlier.

keepit wrote:
Is there a problem?

...concerning what, exactly?
27-03-2020 19:20
keepit
★★★★☆
(1220)
What are these so called lies?
27-03-2020 20:38
Into the NightProfile picture★★★★★
(11753)
keepit wrote:
ITN says, "the same money that is in the system is still in the system".
I see your point but there are two things here.
1 - why are people going broke if the money is still there?

Then you don't see the point. Divisional error fallacy. An individual is not the economy.
keepit wrote:
2 - money in the system goes back to the fed when debts are paid to banks, who then pays the fed.

WRONG. Money goes to the folks the loan. A bank is not government or the Fed.
keepit wrote:
The fed has to redistribute the money to some degree or the money supply will shrink.

WRONG. The fed is PRINTING this money, not redistributing it.

Still batting 0.00.


The Parrot Killer
27-03-2020 20:42
keepit
★★★★☆
(1220)
ITN,
Your response is just semantics and misinterpretation.
27-03-2020 21:32
gfm7175Profile picture★★★☆☆
(424)
No, his response was quite accurate. You are just whining about your 0.000 batting average again.
27-03-2020 21:45
keepit
★★★★☆
(1220)
Baloney gfm. I don't care what you think my batting average is.
28-03-2020 01:38
Into the NightProfile picture★★★★★
(11753)
keepit wrote:
Baloney gfm. I don't care what you think my batting average is.


Lie. Otherwise you would not have posted this.

Still a batting average of 0.00


The Parrot Killer
28-03-2020 02:17
James___
★★★★★
(2420)
Into the Night wrote:
keepit wrote:
Baloney gfm. I don't care what you think my batting average is.


Lie. Otherwise you would not have posted this.

Still a batting average of 0.00



ITN, 0.00 isn't a batting average. .000 is. Slugging % which is total bases divided by at bats can be above 1.000. Then a digit is placed in front of the decimal point.




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