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  For a long time I have had a feeling like there is a shortage of money going around, but couldn’t prove it, or find a way to explain it. When I look out across our country, I see broken towns and cities from one side to the other. They are all crying out for money. Even our government can’t pay its bills. All this makes me wonder, could we be facing a currency drought?

       Taking a deeper look at the problem, we have to remember that this is not a hundred years ago. The old rules on money may not be working for us now. We have more people now. We have more uses for money. The upper structure of our economy, setting aside greed, cost a lot more to run. This means money may cycle at the top, and never really make it back to the bottom. Perhaps the biggest problem is that as much as 50% of our currency could be outside the country, according to the internet. However much there is, the money is technically dead to us. While it may serve some limited purpose, it is not cycling in the homeland, stimulating the economy, or creating tax revenue. When you put all this together, you begin to wonder how much currency is there at the bottom of the economy, where most Americans are at. While some are doing well, most are not. We are all fighting over far too little currency. Remember money, while it may be the medium of exchange, it is still a product. All products must meet their demand, or at least try to. Not only is our money not meeting demand, but it is far under demand. Are we so afraid of devaluing our currency, that we will not do what we need to do to save ourselves, and that is print more money? We don’t have to print enough to pay our debt, because that would be crazy, but we do have to print enough to increase the flow of currency in our country. Imagine the movement of our currency like a dryer. The currency tumbles from top to bottom, and from bottom to top. The outputs we are looking for, are stimulating the economy and tax revenue. What happens when you take too much currency out of the tumbling process, or you have an imbalance?

      Ever since we have gotten ourselves into global trade, how much currency is every country sitting on that belongs to other countries? Currencies that are not serving much of a purpose to the homelands. How many countries may be suffering currency droughts? I believe we are looking at our debt problems all wrong. Are we all so afraid to print, that we are causing currency droughts thru out the world? If our currencies are being used for a greater demand, shouldn’t we at least attempt to meet that demand? The situation for every country may be a little different, but I believe it is worth a conversation. Thanks for reading, and tell me what you think. Am I wrong, or is this a problem?

CURRENCY DROUGHT

By: Shon Tullock

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