Friday, March 27, 2009

Time for MATH.............

It’s hard to wrap your mind around $2.7 trillion.

The average median income (that means half made less than this and half made more) in America was $48,200 in the 2006 census.

There are 111,162,259 households.

$2.7 trillion would give each of those households an additional $24,288.82 which means that if the money went to the people instead of the banks, the median household would increase their income by 50%.

If the people received it, they would likely spend the money setting the economy on fire. The banks instead, will use it to pay off bets they took with foreign counter parties, possibly their own personal offshore accounts and that money will never set foot in our economy.

Where did this money come from? It’s being printed out of thin air in a year, will make each dollar less valuable because there are more of them. It will probably express itself in a rise in interest rates.

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