Friday, December 16, 2011

Transformation 2 Step

About 2 1/2 years ago, BRT did a post titled Economics 101 or Show Me the Money, a blurb dedicated to showing how many boxcars would 15 billion dollars take up and how much would it weigh as said money was lost by various governmental players during the misadventure known as Iraq. 

Now, let's do the math for 29 trillion dollars, the amount the Fed gave to banks and
foreign entities beginning in 2008.
  1. $15 billion x 1.94 = $29 billion
  2. 4.295 box cars x 1.94 = 8.332 box cars filled with $100s = the aforementioned $29 billion
  3. 165 tons x 1.94 = 320 tons = Weight of the $29 billion
  4. To get the totals for $29 trillion, simply multiply 8.332 and 320 by 1000 or...
  5. 8.332 box cars x 1000 =  8,332, box cars filled with $100s = $29 trillion
  6. 320 tons x 1000 = 320,000 tons = Weight of the $29 trillion
Of course, this is just a mental exercise as the actual possibility of having 29 trillion dollars in hand is but a figment of one's imagination, and besides, it's far easier to transform dollars into bits, entities able to be manipulated, moved and created at a moment's notice courtesy of tech, fractional reserve banking and the magical ability to turn IOUs into assets in feeding the multitudes of '"destitute" bankers and foreign interests who, as we know all too well, are too big to fail, don't you think?
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