Saturday, October 11, 2008

Are we there yet?

What do I know. I’m just a small town mom. But I do read the papers (nope, not the local variety. Too much ajinomoto). I heard the US stock market is not doing so well. And when they got a stomach ache, in Malaysia we feel queasy. Some companies are in so much trouble that the US government decided to give them some money (and lots of it too!) and bail them out of trouble. US got money, meh? I thought they have like tragazzillion amount of debt already. So how to get more money? Owh, they borrowlah from some people who still have trust in the government. Like many Economics and Finance professors are saying, the government is default free. Sure can pay one. But how you know? I knowlah. The government will never run out of money what.

The government cannot run out of money. Go into your wallet and take a look at what you've got in it. It's called Federal Reserve Notes. Those are under control of the Federal Reserve. Do you notice that they don't say they are backed by gold. They are not backed by silver. They don't have to have anything behind them except the full faith and confidence of the government. (http://marketplace.publicradio.org/display/web/2008/09/17/pm_fed_cash/)

As long as the government say its true, money will always have its value.

Yea, right.



Double Whammy: 50-Year Record on Sept. 22. $10 Trillion on Sept. 30, 2008.

(to be continued)

4 comments:

Anonymous said...

Apa saya joli semua duit saya simpan dalam bank ka akak cikgu? itu maciam ah, tarak lesap loh...masuk pelut, masuk memori, masuk masuk masuk.....manyak sedap! hehehe

Anonymous said...

Tak apa, teruskan belanja. Kalau ada datang KL, belanja Akak pun tak apa...

Norlela Zubir said...

Assalamualaikum Mun. Topik ini sangat menarik. TPM kata ekonomi kita tidak tertejas meski pun ekonomi USA sedang merudum teruk. Betulkah, Mun???

Anonymous said...

Waalaikummussalam
Kak Lela,
Ya mungkin TPM lebih tahu daripada kita sebab hari tu dia kata impossible harga minyak boleh di turunkan selepas naik mendadak bulan June lepas. Tup tup...eh eh boleh pulak turun.