Thursday, March 3, 2011

Land Of The Free.........Food

I was at the grocery store the other day and it took forever to check out because a girl in front of me was using her shiny new EBT (Electronic Benefit Transfer) card to access her SNAP (Supplemental Nutrition Assistance Program) benefits and was experiencing understandable difficulty.  The program helps people in "need" of assistance.  She had to go back into the isles and exchange several items as the ones she picked did not qualify.  All in, I would say she bought a few hundred fiat dollars worth of stuff that she probably will not use.  Then another delay, she had to do a separate transaction for cigarettes, gum, a candy bar and a People magazine.

44,082,324 people are now receiving food assistance.  I would say based on what I have witnessed going on in my rental houses the following can be taken as fact:

  • 25% Are dead or the benefit doesn't make it to named recipient
  • 50% Trade the card for 50% of the face value in cash
  • 20% End up wasting the food (Every time I have a move out they leave tons of food behind)
  • 5% Actually feed their needy family
If the US Treasury Department put this information in their offering memorandums do you think it would effect their ability to finance this behavior by selling 30yr debt at 4.75%?

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