The Economy 101

hell

I got hungry so I left this thread & went to the kitchen to fix myself a sandwich. Then I found out that I'm out of mayo, so I went to a store. There, I saw the most beautiful woman I have ever seen in my life. I'm really shy so I took a 3 year dating course so I can introduce myself. She was very friendly, but she has a boyfriend. So I said, it’s all good, I'm a an adult. I want the best for her & I harbor no illusion that I’m the best person for her & she seems happy with her boyfriend, so I did not bother her anymore. We kept in touch & became friends. Then she broke up with her boyfriend, so we drank alcohol. I told her I still think she's the most beautiful woman in the world, but Im over my crush on her. It was 5 years since I first saw her. Besides, I am quite happy with our friendship. Its more important than a crush. So we kept hanging out, drinking, having coffee. I had a girlfriend, she started dating other guys. My girlfriend wants to live a life without me, so I said, ok, I want the best for you. My lady friend & I drank alcohol, & she gave me the same advice I gave her when she was in that position & I felt better. But we were really drunk, so she spent the night. I only have one bed, so you know what that means? She took the bed, & I slept on the couch. But I really can't sleep. Something bothered me. So I tossed & turned for about 3 hours, then I finally couldn't take it anymore, so I stood up & went straight to my room where she's sleeping. I approached the bed, gently sat on it & I reached for her shoulder to pull her closer to me. She stirred and woke up. I told her, you know, the first time I saw you, I was reading a thread and left to get myself a sandwich then went to the store to get some mayo then I got distracted by life that I forgot to finish the thread. She said, you know what, I've been wondering about a weird light in your night drawer. So we opened that drawer, & lo & behold I see OP still hasn’t answered and is a huge faggot

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you reduce THE NATIONAL DEBT by 20$, as it can no longer be used as an IOU against the government for the payment of taxes

you ultimately free society from its money slavery, cause an economic collapse and you'd prolly get arrested due to anti-semitism.

it would have no effect on the economy because the money supply is no longer related to the economy in any meaningful sense

You cause massive climate change.
Burn all the $$ bills then Fed needs to print more Monopoly money and here comes the deforestation of the rain forest. Need a shit load of paper. Then price of gas goes up. Need shit load of petro-chem ink to print more money.etc..... Stop fucking up the Polar bears and sheeeeiiit !!! Paper Tiger

Inflation

What the fuck is the answer, OP, you bait-dangling faggot?

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as for the effect on the economy, the private sector's purchasing power decreases (unless you planned to simply sit on the cash until the end of times) by the burned amount, reducing aggregate demand

Deflation*

There whould be less money , meaning that money whould become more valuable

$20 less you have to put into crypto and save your future

We are already doing this.

During the Obama years to keep the economy afloat we had QE 1, 2 and 3 where the fed dumped billions of new dollars into the economy. We are now rolling that back and taking that money off the balance sheet.

We also have lots of illegals sending money back home, taking billions out of our economy.

The real question is what would happen if we kept the billions in our economy instead of basically torching it.

Deflation

Ask KLF

Economists understand money isn't printed. Quantitative easing is bookkeeping monkey trick between bond traders that no longer reaches down to main street.

>what effect does that have on the economy
Absolutely nothing

It's fantastic for the economy.

It means the economy never has to pay you back for the work you did to earn the 20$.

Essentially, society got something for free.

Yo guys gonna go jogging for 65min and see if op has responded after I'm done.

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I got hungry so I left this thread & went to the kitchen to fix myself a sandwich. Then I found out that I'm out of mayo, so I went to a store. There, I saw the most beautiful woman I have ever seen in my life. I'm really shy so I took a 3 year dating course so I can introduce myself. She was very friendly, but she has a boyfriend. So I said, it’s all good, I'm a an adult. I want the best for her & I harbor no illusion that I’m the best person for her & she seems happy with her boyfriend, so I did not bother her anymore. We kept in touch & became friends. Then she broke up with her boyfriend, so we drank alcohol. I told her I still think she's the most beautiful woman in the world, but Im over my crush on her. It was 5 years since I first saw her. Besides, I am quite happy with our friendship. Its more important than a crush. So we kept hanging out, drinking, having coffee. I had a girlfriend, she started dating other guys. My girlfriend wants to live a life without me, so I said, ok, I want the best for you. My lady friend & I drank alcohol, & she gave me the same advice I gave her when she was in that position & I felt better. But we were really drunk, so she spent the night. I only have one bed, so you know what that means? She took the bed, & I slept on the couch. But I really can't sleep. Something bothered me. So I tossed & turned for about 3 hours, then I finally couldn't take it anymore, so I stood up & went straight to my room where she's sleeping. I approached the bed, gently sat on it & I reached for her shoulder to pull her closer to me. She stirred and woke up. I told her, you know, the first time I saw you, I was reading a thread and left to get myself a sandwich then went to the store to get some mayo then I got distracted by life that I forgot to finish the thread. She said, you know what, I've been wondering about a weird light in your night drawer. So we opened that drawer, & lo & behold I see OP still hasn’t answered and is a huge faggot

it happens all the time.
it does nothing.
all the lost/destroyed money is still considered up for grabs/in circulation.
when it is really gone. and literally worth nothing.

Dollar appreciates in value relative to how much debt or monies leaves circulation.

Hmmm

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Nothing. That's why Reparations should be paid to each black person. That will grow the economy better than tax breaks for the rich. The government should not add the amount to the deficit owed to the banks. Instead of telling the banks to spread out the money with the government then paying the banks back for the loan, the government should just directly deposit some numbers into the bank account of each person of color. No debt created.

blackagendareport.com/content/calculating-reparations-15-million-each-slave-descendant-us

No inflation either and if there are any problems, just announce a price freeze for a period of time. Some presidential candidates have spoken out on Reparations. Bernie Sanders said he was not in favor of Reparations in the 2016 preliminaries and he remains against it for 2020. It's no wonder the black community is not in favor of Sanders. He doesn't value the black community enough to even get Reparations.
Democratic Candidates For Reparations:
theguardian.com/us-news/2019/mar/21/reparations-slavery-2020-democratic-candidates

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FRNs are debt. They represent future intent to pay (on behalf of the US Government) and there are radically more FRNs in circulation than can be substantiated by GNP + Commodities (precious metals and other assets owned by the govt/nat'l bank for currency regulation).
Currency is GNP + Commodities. Currency represents value earned: hard money with no inflation.
Currncy printed past GNP + Commodities represents future intent to pay: debt. This is what FRNs are: fabricated paper loaned to our government with interest. They're used as currency, but function as debt.
Burning a lot of them would make them more scarce and therefore raise their value proportionally to world reserve currencies, and would have little functional effect on consumers.
It would represent the destruction of $X worth of US intent to pay (which is so high as to render the last trillion or three irrelevant on the margin), which is a decent enough thing. Depending on which trillion FRNs you take, it might even do some good for the world!

not in freedom land

This is the right answer and op is a faggot

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was expecting to see 'reply to this post, or your mother dies in her sleep tonight'
pleasantly surprised, very high quality shitpost user, well done

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There is currently barely over 1 trillion in fiat money currently circulating right now. The money doesn't disappear, it just can't be recounted by the federal reserve.

So the more money that can't be accounted for the higher the inflation becomes as the banks squeeze worth out of people trying to save money.

The last thing the government wants is for you to save money.

I got hungry so I left this thread & went to the kitchen to fix myself a sandwich. Then I found out that I'm out of mayo, so I went to a store. There, I saw the most beautiful woman I have ever seen in my life. I'm really shy so I took a 3 year dating course so I can introduce myself. She was very friendly, but she has a boyfriend. So I said, it’s all good, I'm a an adult. I want the best for her & I harbor no illusion that I’m the best person for her & she seems happy with her boyfriend, so I did not bother her anymore. We kept in touch & became friends. Then she broke up with her boyfriend, so we drank alcohol. I told her I still think she's the most beautiful woman in the world, but Im over my crush on her. It was 5 years since I first saw her. Besides, I am quite happy with our friendship. Its more important than a crush. So we kept hanging out, drinking, having coffee. I had a girlfriend, she started dating other guys. My girlfriend wants to live a life without me, so I said, ok, I want the best for you. My lady friend & I drank alcohol, & she gave me the same advice I gave her when she was in that position & I felt better. But we were really drunk, so she spent the night. I only have one bed, so you know what that means? She took the bed, & I slept on the couch. But I really can't sleep. Something bothered me. So I tossed & turned for about 3 hours, then I finally couldn't take it anymore, so I stood up & went straight to my room where she's sleeping. I approached the bed, gently sat on it & I reached for her shoulder to pull her closer to me. She stirred and woke up. I told her, you know, the first time I saw you, I was reading a thread and left to get myself a sandwich then went to the store to get some mayo then I got distracted by life that I forgot to finish the thread. She said, you know what, I've been wondering about a weird light in your night drawer. So we opened that drawer, & lo & behold I see OP still hasn’t answered and is a huge faggot

The Federal Reserve isn't regulated. The reported currency in the market from the fed has been $1.6trillion since forever even though inflation has been happening. If the system wasn't a scam effectively burning your $20 bill would increase the value of the entire currency via market supply/demand.

what if he stole it

Then society doesn't have to pay back whoever he stole it from.

>before your thread gets 404
Don't worry I'm keeping an eye on it

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/thread

gooood job graduating economy class

bump.

get it out already, OP.

Nobody cares.

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stop being an anti-semite. Jews have endured enough shit throughout history.

OP is a faggot.

I got hungry so I left this thread & went to the kitchen to fix myself a sandwich. Then I found out that I'm out of mayo, so I went to a store. There, I saw the most beautiful woman I have ever seen in my life. I'm really shy so I took a 3 year dating course so I can introduce myself. She was very friendly, but she has a boyfriend. So I said, it’s all good, I'm a an adult. I want the best for her & I harbor no illusion that I’m the best person for her & she seems happy with her boyfriend, so I did not bother her anymore. We kept in touch & became friends. Then she broke up with her boyfriend, so we drank alcohol. I told her I still think she's the most beautiful woman in the world, but Im over my crush on her. It was 5 years since I first saw her. Besides, I am quite happy with our friendship. Its more important than a crush. So we kept hanging out, drinking, having coffee. I had a girlfriend, she started dating other guys. My girlfriend wants to live a life without me, so I said, ok, I want the best for you. My lady friend & I drank alcohol, & she gave me the same advice I gave her when she was in that position & I felt better. But we were really drunk, so she spent the night. I only have one bed, so you know what that means? She took the bed, & I slept on the couch. But I really can't sleep. Something bothered me. So I tossed & turned for about 3 hours, then I finally couldn't take it anymore, so I stood up & went straight to my room where she's sleeping. I approached the bed, gently sat on it & I reached for her shoulder to pull her closer to me. She stirred and woke up. I told her, you know, the first time I saw you, I was reading a thread and left to get myself a sandwich then went to the store to get some mayo then I got distracted by life that I forgot to finish the thread. She said, you know what, I've been wondering about a weird light in your night drawer. So we opened that drawer, & lo & behold I see OP still hasn’t answered and is a huge faggot

The answer is that the value of all other federal reserve notes (all the ones I didn't burn) goes up by (total remaining notes in circulation) / (amount I burned)

Inflation is based on spending though so if he was just keeping that $1T in cash with no plans for it it would be the same effect

Yeah, that's why they never increase interest rates to deter spending. Retard

It's not true though. It's only true if other people KNOW you burned it.

US monetary system is absolutely ridiculous at this point and any economist defending it is a complete sap

no. that would work only if there were a finite amount of federal reserve notes. we're not dealing with bullion. as there is a literally infinite supply of jewish confetti it makes no difference if a trillion dollars worth of it is unaccounted for.

And requires Federal Reserve notes have any value to begin with. And if the Reserve finds out, they can choose to just print another trillion, or cancel part of the US debt.

You're better off hording silver or any platinum group elements palladium osmium ruthenium iridium rubidium

that will actually effect global supplies which are ever in shorter and shorter supply in the modern mindless consumer economy

Most dollars are ones and zeroes on computers

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If you burn 1 trillion dollars you help melt the polar ice cubes and make climate change happen.
Duh

>(total remaining notes in circulation) / (amount I burned)
so if you owe the gvt X dollars in tax, would using any of the unburned federal reserve notes for paying tax now be more effective?

If they just print another trillion how would that not cause inflation? If it does cause inflation, then wouldn't they have value?

Inflation is measured using a consumer price index which is based on a weighted cost of goods/services. Just printing money is not going to cause inflation. If he government lost a shit load of cash in a fire and they just replaced it by printing more nothing would happen to inflation

You are so completely and totally fucking wrong.

1. The money supply is not conservative: it follows no conservative law. You have mistakenly thought that money is like matter, and it total supply dictates its value.

Fractional Reserve Banking, the selling of stock, wage, and rentier activity PRINTS money! IT sells money for more money printing money.

2. The availability of money in paper form doesn't matter. Most money is not in notes; It is simply electronic. The burning of the notes is irrelevant, since we can convert those notes to bits.

3. It is not the total money supply that determines inflation; it is the change in money supply. The total amount of stuff in the world economy that is used as an exchange medium and is not directly consumed or produced to consume is approximately $900 TRILLION dollars, yet the economies of the world only need $4 Trillion dollars to function as an intermediary. IF the money supply mattered to the cost, then a $5 hamburger should cost $225.

4. This alone should show you the scam of capitalism. If money could not be sold for more money and the intermediary were just an intermediary and could not be sold as a product, and the market only determined the value of products, not the value of labor or the production itself, THEN all that extra value generated and stored in that $900 Trillion dollars would have gone to YOU.

Do you see how you have been fucked? Do you see how you have been duped like OP into the lie of the conservation of matter as applied to money?

Capitalism is a pyramid scheme and a chain letter.
Think about it....

What would happen if they didn't print more?

i can sell a 5dollar bill for 5 1 dollar bills. i can sell 4 quarters for a dollar. its a 1 to 1 ratio dumbass. try going to college, or maybe even high school

Depends. If the money was not actually going to be used and just sat in a vault at the central bank then nothing. If say the money was to purchase assets from banks to increase money supply and decrease interest rates which would likely be for the purpose of increasing inflation then that increase would not occur and it would remain lower than they wanted. This is ignoring the digital side of things or assuming they had $1T digital go missing and didn't replace it or something

How are those college loans coming along?

What is interest?
What is return on investment?
what is rent?

There is a balance between production and consumption, and a balance between Buyer and Seller. There is an intermediary to this trade called money. When you lend money and get back more money you either take money from someone else, or you print money.
IF you didn't print money, it would be a Zero sum.

IT is not surprising you can't understand this. The con man changes the conservation law to suit their argument. Just like those who believe the earth is flat.

Look up Pareto Efficiency. Look up Fractional Reserve Banking. Don't despair; if economics were easy, we wouldn't have such misunderstandings.

It says in the constitution only gold/silver backed money is worth anything, everything else is a scam to control you and create a socialist welfare/warfare state. Printing does inflate the dollar, they WANT 3% inflation every year, it used to be that you could put your money in the bank and gain interest can't do that now, you have to invest in their phony full of air union controlled anti-competition stock market, that's why china is kicking our fucking ass economically and building 7 aircraft carriers right now. Some good worthless pigs dead make me smile real big.

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wow cletus I......lets just say you are wrong. now go back to changing oil and turning wrenches dipshit. leave the important matters to the adults.

Inflation in low amounts IS good retard. Unless you want a stagnant economy. You can gain interest. That interest is based on the fed funds rate so if you are getting a lot of interest it's because inflation is too high and they want to lower it by deterring spending. If you think making money off a term deposit account is or ever was the way to go then you're beyond saving.

If you're a subhuman nigger and you can't compete and shit out a bunch of niglets and exhaust all the resources and want to create a unsustainable immoral welfare/warfare state it's great.

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well (((who))) was the (((professor))) who taught them what they know? (((who))) was their (((professor's professor)))?

Sometimes it takes earning an econ degree to realize that economics is a total scam and (((economists))) are just scam artists, because if you aren't an NPC fuck, you get redpilled daily by how little reality resembles the shit you were taught.

Wow, great counter argument. You got me good

At least there is still a man on the bill! I’m just grateful for that !

depends who did the burning. If it was Bezos burning his own trillion, you are incorrect. If it was Steve Mnuchin, you'd be right.

Show how weak and useless the constitution is.

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>There, I saw the most beautiful woman I have ever seen in my life
>pic unrelated

Wouldn't that be more to do with Janet Yellin or whoever you guys have as head of the Fed now?

That only says that STATES can't make their own fiat currency, not the fed. The line about silver and gold has to do with the STATES making currency.

You gold standard people have the same problem as everyone else. It is not that money has to have some intrinsic value to be worth something.

Barter trade values products by their ration of trade. But you CANNOT barter unless BOTH sides have what the other wants. This means there is no such thing as value outside of the immediate trade between two people.

By introducing a UNIVERSAL trade item that can be traded for everything, NOW everything can be traded. HOWEVER in doing so you now make the universal trade item itself the most valuable thing BECAUSE it can be universally traded.

No forcing of a conservation law by a gold standard or anything else works, first because the gold would have to change its value, but mostly because there is no platonic value to anything.

Capitalism takes the benefit of that universality for private benefit BUT it was EVERYONE that made it valuable.

This is the heart of all economic conflict: Why should individuals benefit from what all of us produce, and why should an individual have to pay for what all of us consume?

The answer is Public Banks and the elimination of income tax. Make the return on investment that prints money go to pay for what all of us have to pay for with taxes.
Take the things that break the market's ability to value - wage, the sale of production as stock, rent - out of the market.

No fucking wall street thieves. No fucking income taxes. A balanced system of interdependence through trade where the market actually values your work and you are paid accordingly.

this

also the pentagon regularly loses trillions of dollars and we can never audit the FED so it's basically all a ponzi

inflation sucks, because as we can see from the data, wage inflation is not coupled with price inflation, so if that's the case, deflation is preferable if you're a wagie and not a kike investor

youtube.com/watch?v=E12b4V1ilmg
oy vey goy you will neva know where tha 2.3 trillion went
now go die for israel or it's anotha shoah

I'm pretty sure the data shows that real wages haven't increased in the US for a long time which would mean they're following inflation very closely.

My line of thinking was that the Fed can't owe itself money, but the US government can owe the Fed money.

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Also deflation usually coincides with a drop in GDP and while wages tend not to decrease, employment does.

the data shows at what specific rate each is inflating at. If CPI is 2.1% and wage inflation is 1.8%, then the wagie is getting screwed.

"Close" only counts in horseshoes and hand grenades, some say.

now you're speaking yiddish

Ah right, gotcha. Yeah, that makes sense.

Gayest answer ever

can you issue a currency that's backed by a basket of community assets
say there's a community bank that offers loans
and you use the interest gained to improve the community instead of extra taxes
can that bank issue a currency by saying they own x amount of houses y amount of businesses z amount of other stuff based off the value of the loans and available collateral in the event of an individuals default

how would new money be issued, what could you reference? gold, silver, bitcoin, oil?

A 20 dollar bill burnt will really do nothing to the macroeconomy. 1 trillion dollars burnt would drastically reduce the money supply causing mass deflation and loss of confidence in the dollar as the world reserve currency, causing it to dip in all forex markets. This would result in massive depression across the US until it switched to a different means of currency entirely.

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Not necessarily true (although probably true in this case).

For e.g.: nobody knows how many watches Rolex produce each year. Yet the price for used Rolexs is high.

Duh, the jews will just print some more. Rob a bank, jews will just print more and charge us interest.

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The data shows that real wages are almost the exact same since the 70s. Your issue isn't wages and inflation. Your issue is productivity and wages, productivity has outgrown wages enormously and while that's more due to technology rather than actually working harder it's still a rip that Mr Goldstein is pocketing increasingly more from your time
How so?

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the idiot maga fucks of this thread rly reinforce why voting R is ALWAYS the stupid, wrong, and irresponsible thing to do

>what effect does that have on the economy?
it doesn't do a damn thing. they will reprint it and it will be just as valuable as before.

Jew-piter

>If you're a subhuman nigger and you can't compete and shit out a bunch of niglets and exhaust all the resources
>and want to create a unsustainable immoral welfare/warfare state it's great.

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the idiot maga fucks of this thread rly reinforce why voting R is ALWAYS the stupid, wrong, and irresponsible thing to do