Japan and the deficit.
What will happen to all the talk of deficit and budget cuts when we as a country fund Japan, to whom we are the largest debtors with Treasuries. All of the talk, all of "Obama from Kenya, a socialist, or a Muslin", and the breaking of unions is all to rip apart government and stop the waste.
Pee partiers sleeping on their couches in the House and Senate, the reform of America.... hmmm, the devastation is overwhelming and our repayment of debt by giving them money, and this deficit will soon have to be Cheney's famous "deficits don't matter) have to be true. Cheney was right, if the economy grew and equities gained value. It's pure Keynesian thinking and to a large part it's become reality that will be, a perpetual house of cards
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Money must be understood. It is a “construed value” commodity, only
worth the value that we put on it.
Most Americans never understand this. All third world countries do.
The Gold/Silver/Greenback Ratio- A Floydian Point of View
The US Government is trying to tell us that the US Dollar("greenback") is only worth between .028 cents & .035 cents adjusted for true inflation. Take three instruments of US legal tender, 1) a one dollar bill.("greenback") 2) a 1oz. silver Eagle(face value $1.00) and 3) a 1oz. gold Eagle(face value $50).
All three are legal tender in the US. All are recognized, backed and printed or minted by the US government and backed by the US Federal Reserve for ONLY their face value.
If you want to buy a $1.00 "greenback" from the Fed, it will cost you $1.00 or 100 pennies.
If you want to buy a $1.00 1oz. silver Eagle from the Fed, it will cost you 35 "greenbacks".
If you want to buy a $50.00 1oz. gold Eagle from the Fed, it will cost you 1,400 "greenbacks".
$1.00 silver Eagle divided by 35 greenbacks = $.02857142
$50.00 gold Eagle divided by 1,400 greenbacks = $.0357142
It will tell you what your greenback is worth adjusted for TRUE inflation since we went off the gold standard in 1973.
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