Fancy accounting ... fake cash
The US National Debt $11,046,247,657,049.48 (According to US Treasury Direct, 3/26/09) would seem impossiby HUGE ...
Don't you like that, "but", (there always seems to be a "but" doesn't there?), bear with me a moment please 'cuz here's mine:
This number is approximately 13 times the amount of US currency in circulation, according to the Treasury bulletin, which lists the amount at $853.6 billion as of December 31, 2008. That's the cash in your wallet, in the vaults, out in the economy "printed" cash.
Why is that important ...?? The TARP and TALF money WASN"T PHYSICALLY PRINTED as all these media hyped allegations keep humming about. Everyone, INCLUDING the USA gov't is doing some FANCY accounting.
Other than AIG, GM, and Chrysler ... the 700 BILLION is decimal points in the records of the FED where most of the banks have left the TARP (TALF) funds to count as RESERVES so very little REAL, spendable, monies made it out into the economy, AND thanks to AIG, much of that money went all across the planet. To be inflationary ... it has to be real and spendable.
There's more ...
I refer to the decimal points in the records of the FED as FAKE cash because it was NEVER printed, never loaded onto trucks, never delivered, never put in a vault ...; yet, the USA gov't has received REAL preferred shares, (Note, this has diluted the holdings of the stockholders) and the gov't will be receiving REAL dividends, and has the opportunity to exchange preferred for common stock, that when redeemed, will be redeemed with REAL cash, ... this is a TRANSFER of ASSETS without due process from John Q Public to the USA gov't.
and Ta DA, I seem to remember this "similar" scenario happening in the story "Alladin" something about exchanging a "NEW" lamp for "old lamp" . Ha, ha, ha!
... and about all the media inflationary hype, sorry, but the REAL monies that made it into the world, the global economy, ... well, that's like throwing a cup of water into the ocean. Did I "inflate" the ocean? YES. Is a cup of water "statistically significant" compared to the volume of water in the ocean? NO. Is the real monies that made it out into the global economy fundamentally LARGE enough to be "statistically significant"? NO, NO, NO.
This has all been an asset grab from the get-go ... this is a TRANSFER of ASSETS without due process from John Q Public to the USA gov't.
Just my point of view ...