Alex’s Notes: You know, the word trillion has been used so much recently that it has perhaps lost its impact of how huge those numbers are.
For the entire history of the US, up to 1980 only $1.5 Trillion dollars were created and added to the money supply.
It has been said, that gold tends to revalue and do an “accounting” of all of the fiat money created and added to the monetary system since the last “accounting”.
The last accounting was in 1980, when gold reached $850 an ounce, based upon $1.5 Trillion of created and added up to that point.
I find it interesting to note, that since the last accounting in 1980, the US has added an ADDITONAL $12.5 TRILLION to the money supply, not to mention the additional $8 TRILLION that was added in the last half of 2008.
When gold does an “accounting” this time, what will it go to?
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The $8 trillion bailout
Many details of Obama’s rescue plan remain uncertain. But it’s likely to cost at least $700 billion - and that would push Uncle Sam’s bailouts near $8 trillion.
By David Goldman, CNNMoney.com staff writer
Last Updated: January 6, 2009: 10:34 AM ET
NEW YORK (CNNMoney.com) — Sitting down? It’s time to tally up the federal government’s bailout tab.
There was $29 billion for Bear Stearns, $345 billion for Citigroup. The Federal Reserve put up $600 billion to guarantee money market deposits and has aggressively driven down interest rates to essentially zero.
The list goes on and on. All told, Congress, the Treasury Department, the Federal Reserve and other agencies have taken dozens of steps to prop up the economy.
Total price tag so far: $7.2 trillion in investment and loans. That puts a lot of taxpayer money at risk. Now comes President-elect Barack Obama’s economic stimulus plan, some details of which were made public on Monday. The tally is getting awfully close to $8 trillion.
Original Article
