Stupid Economics question re: CASH - Democratic Underground

FirstLight

(1000+ posts) Send PM | Profile | Ignore

Mon Jul-25-11 11:29 AM
Original message

Stupid Economics question re: CASH

So, I have seen here a few scenarios with the default that mention inflation and cash running out or drying up.

Can someone humor me and tell me what this really means? So if my grocery store isn't able to pay the supplier, there's no food? if the gas station owner has money, but the distributor can't get his gas from the refinery on credit, there's no gas? How does this thing work?

I have no credit myself, and very little cash... so i really don't understand the concept or the mechanism. I've been defaulted on my student loan for a number of years...but other than taking my taxes, it hasn't really affected me... :shrug:
Now, I *do* happen to have federal assistance as a main help for living... Hud Housing and cash aid/foodstamps... I know those things drying up would be bad and scary...but honestly, if things devolve into THAT much chaos...I'd probably just stay put and squat in my current house, and survive by commune-type living with my friends and family close-by...

I appreciate your input...

Printer Friendly | Permalink | | Top

FirstLight

(1000+ posts) Send PM | Profile | Ignore

Mon Jul-25-11 11:42 AM
Response to Original message

1. kick...?

....anyone....Bueller?

Printer Friendly | Permalink | | Top

FirstLight

(1000+ posts) Send PM | Profile | Ignore

Mon Jul-25-11 12:03 PM
Response to Original message

2. "something...D-o-o economics..."

"anyone, anyone....VOODOO economics...":rofl:

seriously? can I get any financial people to answer this? wow...not dramatic enough of a headline...

Printer Friendly | Permalink | | Top

FirstLight

(1000+ posts) Send PM | Profile | Ignore

Mon Jul-25-11 12:28 PM
Response to Original message

3. 3rd kick...

"hey, is this thing on...?"

Printer Friendly | Permalink | | Top

FirstLight

(1000+ posts) Send PM | Profile | Ignore

Mon Jul-25-11 12:36 PM
Response to Original message

4. ...

Printer Friendly | Permalink | | Top

ProfessorGAC

(1000+ posts) Send PM | Profile | Ignore

Mon Jul-25-11 12:41 PM
Response to Original message

5. It's On

Things have to get far worse than what will, no matter what anybody says, a temporary issue. First of all, the cash is still in the system. So, money will still circulate. There are TONS of cash transactions everyday.

The biggest issue is what happens with credit markets. An awful lot of credit is leveraged upon cash flow from big borrowers (like the U.S. gov't) being able to reflow the same cash back through the system several times.

The thought that the entire economic structure will collapse because of a temporary credit crunch is hyperbole. If it happens, it won't be pretty, but it won't take everything down.
GAC

Printer Friendly | Permalink | | Top

FirstLight

(1000+ posts) Send PM | Profile | Ignore

Mon Jul-25-11 07:39 PM
Response to Original message

6. kick for the evening crowd? n/t

Printer Friendly | Permalink | | Top

DU AdBot (1000+ posts)

Mon May 06th 2024, 07:08 AM
Response to Original message

Advertisements [?]

Top

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.