CommunityMy FDL

How stupid does it get????

The impasse over disaster relief is a marvelous example of abject stupidity as well as blithering ignorance of both the concept of fiat money and the concept of insurance.  When an insured disaster strikes, the policy holders are billed for the cost to address the problem.  And in this instance, the best way to bill the United States citizenry  appropriately is to create the money needed to address the disaster and spend it into the economy without any additional debt and without any additional taxation.  Be sure to understand that the congress must approve the measure in any event.  But all the pig shit about it being part of the planned budget is ridiculous on the face of it.  Shit happens.  And when it happens it should be addressed in such a way as to minimize the adverse effect on the community as a whole.  The addition of 4 or 5 billion dollars to the current money pool is not going to cause any adverse effects because the total money pool is so large at present that even 10 billion won’t make even a minor ripple.  The M2 aggregate is more than 9 trillion according to the Federal Reserve.  Any moron that thinks adding 5 billion to that pool will make even a tiny dent needs to learn a few things about money.

If you OWN 10 thousand dollars (your financial assets),  then the value of our holdings is diminished by $5.26  although the dollar denominated amount of financial assets remains constant.  For those of us who have liquid assets more like 2 or 3 grand, we get hit for couple of bucks worth of value.  It seems a very fair way to bill the general population for disaster relief specifcally.  Not recommended as a replacement for taxation, but a good way to manage the overall insurance system administered by FEMA.

Previous post

Both Barrels from the New Aristocracy

Next post

Pull Up a Chair