Quote:
Originally Posted by Billybob
In part based on the Federal Reserve Banks announcement that they are devaluing the dollar by printing up 600,000,000 more in magic money to buy up US Treasury debt!
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yes people are scared that their dollars will be worth less.
Historically, back when societies used real gold for money, the king would gather them up (the gold coins) and recast them with some 'lesser' metal mixed in i.e. "devaluing" the money. This was done mostly to pay his army. Of course, the people were smart enough to catch on somehow and they started charging more coins for the same goods (to get the same amount of gold content). Hello, inflation was born.
With Ben (the other Ben, not me)basically printing money he is doing the same thing as those old kings.