Shepherd Smith: That's all we do anymore, is print money!

[Jordan]

I hate fiat money more than anyone but this reference needs to die. Yes of corse a penny costs more than one cent to make. But remember, a penny is used more than once. It's not like they are paying 1.4 cents to make a penny and then it is used for one transaction and then thrown away!

The theory of the velocity of money is ridiculous. Assume the Fed instead made lawn mowers, I could get one lawn mower give it to a friend who in turn gives it to a friend. Even at the end of the transactions, there would only be one lawnmower not three.

 

[socialize_me]

The theory of the velocity of money is ridiculous. Assume the Fed instead made lawn mowers, I could get one lawn mower give it to a friend who in turn gives it to a friend. Even at the end of the transactions, there would only be one lawnmower not three.

Bad, baaaaad reference. First off, the thought of even having lawn mowers as a currency is crap cooked up in Macroeconomics books. I read some bullshit where we had to determine the production possibilities frontier of robots and pizza as they had ANYTHING to do with each other. Economics is a topic that likes to think it's creative and cute, but in reality it's all just a bunch of graphs where "experts" try and explain everything that happens by holding all but one or two things constant. One example I remember was to imagine a scenario where we had no trade and no government. Honestly, does anyone fucking believe that's possible? If there's no government, who is going to shut a country off from trade?? Unbelievable...

Pennies do pass through the system many, many times. I see pennies from the 1970's and anyone who thinks it's been in a coin jar for 30 years is fucking delusional. Stop with the theories and the bullshit examples and use some common sense.

 

[roho76]

Oops..
Maybe, I was being conservative to be sure I was accurate.
I'll bet you one penny that 3:1 is a bit high.

Then you wouldn't be betting a penny now would you?

 

[Jordan]

Bad, baaaaad reference. First off, the thought of even having lawn mowers as a currency is crap cooked up in Macroeconomics books. I read some bullshit where we had to determine the production possibilities frontier of robots and pizza as they had ANYTHING to do with each other. Economics is a topic that likes to think it's creative and cute, but in reality it's all just a bunch of graphs where "experts" try and explain everything that happens by holding all but one or two things constant. One example I remember was to imagine a scenario where we had no trade and no government. Honestly, does anyone fucking believe that's possible? If there's no government, who is going to shut a country off from trade?? Unbelievable...

Pennies do pass through the system many, many times. I see pennies from the 1970's and anyone who thinks it's been in a coin jar for 30 years is fucking delusional. Stop with the theories and the bullshit examples and use some common sense.

Obviously lawn mowers suck as currency, I picked something that isn't currency as an example. You're delusional.

I am using common sense. One penny is worth just one penny. Plain and simple, when you use 1.4 pennies to make 1 penny you're losing money no matter how many times that one penny is used.

Granted that penny may be spent many times and generate the government plenty of .28 cents, but that's not how it should work. One penny is one penny.

Simple question, you've probably received and spent well over a million dollars in your lifetime but do you still have every single sent you've touched. You don't because you've passed it on, you no longer own it.

 

[socialize_me]

Simple question, you've probably received and spent well over a million dollars in your lifetime but do you still have every single sent you've touched. You don't because you've passed it on, you no longer own it.

The theory of the velocity of money is ridiculous.

*sighs*

 

[Jordan]

*sighs*

I'm simply asking how you can defend spending 1.4 cents to make 1 cent?

 

[trapfive]

You can leave the cost of production completely out of the equation.

When a penny is produced it represents 1/100th of 1 dollar of our total fiat currency system. Doesn't matter how many times it's spent, it's never represents more than 1/100th of 1 dollar of our fiat currency system.

Let's talk about the cost of production. If we concede that a penny cost 1.4 pennies to make, but that's ok because it gets spent over and over, we've conceded on principle.

I mean where do we "draw the line". Would it be ok if pennies cost 10cents each to make? How about dollars, would it be ok if it cost 5 dollars to make a dollar, or 50 dollars to make a Franklin?

Now the question I'd have, who's charging us $50 to make a $100 bill. That would be the same group of people that make 1.4 cents per penny.

This reminds me of the video floating around here somewhere where the spokesman for the Chicago Fed brags about printing $100 bills for 10 cents each and foreign countries just keep gobbling them up. He's basically under the assumption that every time we trade $100 bill for foriegn "goods and services" we're coming out $99.90 to the good. That's just great in the beginning of the game but guess what gang...it's late in the fourth quarter and our government is praying for overtime.

 

[Knightskye]

What could be Shep's reason for opposing printing money? Maybe we could tap into that and get some neocons on our side.