Study Break Memes and Funny Images
A.I. Will Come for All Jobs Soon 👌
Artificial Intelligence (AI) Meme Gallery
Quotes, Messages, and Social Media Posts of the Day
The Effect of Printing Money
Whenever there’s a big economic downturn or a bursting of an asset price bubble, you’ll hear media commentators talk about billions or trillions of “lost wealth.” The question is, is it really lost or did the so-called wealth really exist to begin with? It’s tough to tell when the amount of currency in circulation changes by the day and money is constantly shifted around to different investments.
Take the tech bubble burst in the early 2000s and the housing crash of 2008. If you held these assets, you saw your investment balances crash brutally fast. However, it’s not like a bomb went off that destroyed all the housing, or computers suddenly stopped working. The crashes reflected misallocated funds, and in the case of the housing crisis, a massive drop in the virtual money supply (as banks stopped lending). In other words, the real innate worth of housing and tech companies didn’t change at all. Instead, the financial measures of their worth changed.
On the flip side, probably the greatest true wealth-destroying event of the last 50 years actually looked extremely profitable on paper. I’m talking about Covid. Sure, asset prices dipped a lot during the initial panic, but if you stayed invested in stocks or housing, you made a killing!…that is, at least according to your account balances. But did Covid actually create underlying wealth? No!!!…mainly because governments forced a stop of nearly all economic activity. Factories stopped running, construction was halted, supplies stopped being shipped, and workers stayed home listening to media-created hysteria. This led to shortages of everything from cars to toilet paper. We essentially had to live off of stored wealth, the items we’d already produced. So, why did investments show major gains then? It’s simply–money printing. Governments used massive amounts of debt, financed with virtual currency, printed by central banks. Thus, on paper, investments skyrocketed. The main beneficiaries were the ultra rich who owned most of these assets. The rest of us paid the price with crushing inflation.
It scrambles your brain trying to visualize this all, but it’s also a reason not to panic whenever the media starts running sky-is-falling scenarios. Is real innate wealth being lost, or is it just figures showing changing balances in a corrupt monetary system? In a typical world scenario, there’s really only one thing that can destroy real wealth seemingly overnight — war. That is where governments and central banks are the most dangerous.
What Is Wealth, Economically Speaking?
Is War Good for the Economy?
Blog Link: https://educationdojo.com/study-break/2026/02/02-25-education-dojo-daily/#random_thoughts
I confess. I was county vice chair in Riverside, CA and Gwinnett, GA and ran for State Senate in CA PROUDLY under the Libertarian Party banner. I walked away from the party after their pathetic and non-principled response to 9-11 and their behavior and candidates ever since (seriously…Bob Barr??). Great Venn diagram.
Exchange rates. For several years the Australian dollar has been worth 63¢ US. The Reserve Bank of Australia held that rate within +/- one cent. But – in the last five weeks the rate has been rising. The peak in the last 24 hours, just over 71¢US. It’s not that the Australian dollar is worth more, the value of the US dollar on the world market is falling.
Its like saying which ship is worse off…the Titanic, the Bismark, or the Edmund Fitzgerald….based on their depth below the waterline…..
And remember, those tables Jesus overturned in the temple belonged to the MONEYCHANGERS!!!