Is Citibank closing?

[tidus1203]

Am more curious how this will affect your everyday joe and juan in the U.S.

What is the outlook like for the U.S.? What will be the U.S. like in terms of the everyday person there and how will it impact their lives?

Basically it all boils down to the Fed being able to print as much money as it wants, whenever it wants. So if Citigroup is insolvent they can lend then "new money" (new money hot from the printing press) to keep them afloat. The problem with printing new money is that increases the supply of money and that is one of the major causes of INFLATION. We hear that term every now and then and probably you might remember your Economics 101 terming INFLATION as the rise in prices over time. Actually what your Economics teacher fails to tell you is that rising prices is already the effect, although there are many causes the one main cause is increase in money supply.

Essentially now there is MORE MONEY chasing the same or fewer amounts of goods and that leads to INFLATION. Higher inflation erodes your average Joe and Jane purchasing power and they are less and less wealthier. Although they still have the same $100,000 it can no longer buy the same things as it did before.

If you still can't get the concept watch this video from the European Central Bank, it explains the concept very well.... [ame="http://www.youtube.com/watch?v=7sjQ7ly2NDU"]YouTube - European Central Bank Educational Video[/ame]

The irony is that its actually the central banks monster

[uls]

average joe and juan has to pay more for food and fuel.

but average joe and juan isnt making more money.

this not only affects those living in the US but people all over the world.

Coz there's so much money out there looking for places to park... places to grow... places to beat inflation...

and where the hell is a lot of that money going?

Commodities!!

Gold, oil, grains, every damn commodity!

How much is a liter of gas now?

How much is a kilo of rice?

How much is a loaf of bread?

Yan ang nanyayari pag mas madami ang umiikot na pera kesa sa mga bagay na mabibili ng pera.