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July 06, 2022
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Can You Create $1 Trillion Dollars From Thin Air?

U.S. Dollar Decline
Can You Create $1 Trillion Dollars From Thin Air?

When the Federal Reserve created $1 Trillion Dollars, out of thin air, what does that look like? How can we understand a number like a trillion.

You can spend $1,000,000 dollars a day, 365 days a year and it would take you approximately 3000 years to spend a trillion dollars.

Kiplinger says, ā€œ$1 Trillion Would Buy 41,999,160 New Cars.

Fox Business projects, ā€œA stack of one trillion U.S. one-dollar bills would go almost one quarter of the way to the moon and weigh approximately ten tons.ā€

The height of a stack of 100,000,000,000 (one hundred billion) one dollar bills measures 6,786.6 miles. And that’s still not a Trillion Dollars.

At the current price of Gold, $1 Trillion Dollars would equal the value of 43,859 Troy Pounds of Gold. That’s Troy pounds of Gold.

The Gold Standard Is Gone

From 1879 to the 1930s, the value of the U.S Dollar was tied directly to Gold. One ounce of Gold was valued at $20.65 prior to 1930. At that time, it would have been impossible for the U.S. Government or the Federal Reserve to create money from nothing.

If the ā€œmasters of our monetary universeā€ wanted to inject Gold money into the economy back then, they had to move Silver or Gold money from the U.S Treasury into the economy.

Today, the Federal Reserve no longer has to move precious metals or paper money into the economy. They merely produce a long series of computer keystrokes and move a few Billion Dollars here, $50 Billion Dollars there.

Creating a Trillion Dollars Out of Thin Air

We don’t feel like we need to say another word to describe the absurdity of creating a Trillion Dollars, out of thin air, then injecting it into the U.S. economy as a stimulus ā€œsolutionā€ to the COVID 19 pandemic crisis.

But, that’s not what the guys in Washington did. They dumped $2 Trillion Dollars on the problem and were supposed to spend. Broadly speaking, there are five components to the COVID-19 stimulus bill:

Category

Total Amount

Share of the Package

Individuals / Families

$603.7 billion

30%

Big Business

$500.0 billion

25%

Small Business

$377.0 billion

19%

State and Local Government

$340.0 billion

17%

Public Services

$179.5 billion

9%

The first COVID-19 stimulus bill was incredibly complex. But, hey guys, it isn’t easy to give away $1,000,000,000,000 U.S. Dollars— and it gets worse. The politicians finally put $2 Trillion in the first stimulus bill.

$1 Trillion Dollars Not Enough Fake Money

Now, they say it’s not enough. They want another a Trillion or two. None of this makes sense to us— not the shutdown, not the pandemic, not the financial crisis, and certainly not creating $2 Trillion Dollars out of thin air.

If you were wondering if the Dollar might be ā€œfake money,ā€ now you know.

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