Spend Money To Boost the Economy

Spend Money To Boost the Economy

Recently NYTimes Said That,

The Businesses and holding on to much of the NEW MONEY

Given this problem, there is a logical and seemingly simple move available to the Fed: just make people believe that it is seriously committed to increasing the rate of inflation. Traditionally, the Fed has focused on restraining inflation, not stoking it. But these are unusual times.

If the Fed promises to keep increasing the money supply until prices rise by, say, 3 percent a year, people should eventually start spending. Otherwise, if they just held the money, it would be worth 3 percent less each year.

Well, This means that the newly printed money out of thin air by the Fed Government is different than the routine money in the circulation even though both of them share the same properties.

According to the top economists, Federal has printed this new money in the economy so that you can spend it like anything to boost the economy.

If you you don’t know anything about how much fed has printed the new money since 2007 than see the following chart.

See the above chart. The above chart is of US monetary base (Money in Circulation) means according to the above chart since 2007, the Fed has printed literally $ 1200 Billion (US $ 1.2 Trillion) out of thin air only and shoot up its monetary base from just $ 800 Billion to $ 2000 Billion (US $ 2 Trillion).

Means the Fed Government has doubled the monetary base since 2007. Right most of this newly printed money is sitting in the bank reserves. But when this money will be in the circulation, it will cause severe hyperinflation.

But well, Smart economists say that the US needs the steady 3% inflation every year which is better for its economy. And that’s why right now the rich people are using this newly printed money (Also known as Hot Money) to get richer than ever.

So How you can also use this hot money to get richer? Well, it’s simple borrow it from the banks and government at ultra-low level interest rates (Around 0.50% annually only) and use this borrowed money to acquire assets (Mainly Businesses & Real Estate).

But well, to use this money you MUST have the basic financial knowledge of the basic terms like Assets, Liabilities, Cashflow, Financial Statements…etc..

You MUST be mastered in reading the financial statements. But unfortunately, our schools don’t teach us that how to become financially smart.

But well, if you want to become a financially smart than Download my eBook – MJ2BC: What Rich Teach Their Kids About Money That Poor & Middle Class Don’t?

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I am sure that after learning the basic lessons on money from my eBook, you will be able to get and stay rich in your life. And yes, if you like my eBook than don’t forget to spread this financial awareness among your friends and family.