Frank and Ernest by Thaves for July 29, 2009

Inflation.

The more money You get, the less You can buy.

inflation = flat tax

I recently saw a Zimbabwean 100 TRILLION dollar bill. Worth a few bucks. I’m told you can buy them on eBay.

I don’t believe the U.S. will ever get that bad, but if you are old enough to remember real silver dimes, 29 cent a gallon gasoline, a new car for $1500, and a new brick house for under $20K, then you know that we’ve had our own equivalent of Zimbabwe’s inflation, just slower.

I recently learned that when the Fed pumps money into the economy it can have different effects depending on details of the precise mechanism. Sometimes the extra money becomes inflated consumer prices. In the recent decade it became inflated stock market and housing prices and excess credit card debt, leading to the current financial mess. Hard to predict what Obama’s additional trillions will become, but it won’t be good.

Ah, it’s only paper. Your children can afford it

The Mint makes coins. Paper money comes from the US Printing Office.

but the general public won’t make that distinction. funnier as a gag this way. (IMHO)

D-i-c-e-R said, about 8 hours ago

inflation = flat tax

Yes, except it taxes the capital on savings too, which may be one reason our saving rate is so low here.

how did these guys get a security clearance to work at the US Mint?

Alotta irony in today’s comic….The worse the economy, the better the job security for government printers.

Actually, paper money comes from The Bureau of Engraving and Printing, not the U.S. Printing Office. (Although I agree that that most people wouldn’t make that distinction, and that the gag is funnier this way.)

And there isn’t any government organization called “The U.S. Printing Office”. vishooter, I’m guessing you meant the Government Printing Office. They print government documents such as informational booklet and regulations.