How the Government Pulls Coronavirus Relief Money Out of Thin Air
[nytimes.com]
"Once-fringe ideas in economic theory are now nearly official policy as government borrowing surges and the Federal Reserve signals it could buy unlimited debt."
There are only two ways to pay the debt we are/have created!!
Why should I care about the effect loose money has outside of my lifetime? We're dealing with near-deflation right now despite Fed policy. So far the money printing hasn't trickled down to the real economy. The only things that have suffered from inflation are public goods like health care and college.
@WilyRickWiles You may only be concerned about YOUR LIFE TIME, but I have children, grandchildren and Great-grandchildren and they don't need to be paying my DEBT!!!!!!
Ricky, have you checked the price of an average new car??? I paid $2487.00 out the door, tax and license included, for my first NEW car!!
So, how is it inflation only affects college and health care!!
@Serg97 I'm talking about things that have inflated meaningfully in recent decades.
@WilyRickWiles Ricky, I don't believe you have a CLUE about much of anything! So, I will bid you adieu!!!!!!
And your thoughts are?
Good. I hope that they go further in running deficits and purchasing debt so that ordinary people are helped more directly (e.g. health care, higher education, housing, and UBI), giving them the capital they need to shape their lives, so that monetary policy serves small businesses and not just corporate consolidation, so that state governments are able to keep federalism alive without being crushed by pension obligations, and so that global challenges like climate change can be confronted.
@WilyRickWiles Ricky, more debt and deficits is the last thing the poor and middle income people need!!
They are the ones who ALWAYS pay the price in the END!!!!!
@Serg97 When the Fed buys the debt, it ceases to exist at maturity. Yes, there is a balancing act, but it's not budgetary, it's in the economy. And keep in mind that because of structural reasons, inflation is not a problem right now.
@WilyRickWiles So what does the Fed use to buy the debt, and how does it cease to exist???
Any debt has to be repaid in some way!! Dept, even if it is just a favor, has a price to be paid, that is why it is called a "DEPT"!!!!
Otherwise, it would be a GIFT or FAVOR!!!!
@Serg97 It prints money to buy the debt and returns any income to the Treasury that issued it. It's effectively an accounting gimmick for money printing.
@WilyRickWiles I believe that is what I said to start with!!! DEVALUE THE DOLLAR!!!!!!
@Serg97 Sure, there's inflation if people have more money than the goods they can buy with it. But it doesn't necessarily devalue the dollar if it is financing economic activity. And one might decide there is a balance to strike for the public good.
So, what does this sort of policy mean to the value of the $10k worth of small, unmaked bills in my gun safe?
@govols I think it should be fine, though any cash not being invested is going to suffer from some inflation over the course of decades.
@WilyRickWiles, but do these sorts of policies change the rate of inflation imposed upon currency stashes?
@WilyRickWiles But, per what you are saying, govols cash, should not be affected unless he plans to use it for college or medical expenses!!!
@Serg97 I'm saying those are things that have inflated in recent years--I think government should play a bigger role in providing them--let the rest of the economy pick up some of that balance.
@WilyRickWiles Who the hell do you think paid for raising my FIVE kids, and the rest of the "ECONOMY" is people like me!!! I have done my share, have you??
Now your stupidity is beginning to piss me off!!! Quit while you are ahead!!!
Everything I get now, I paid for , how about YOU????????
@Serg97 That's not what I meant, but OK!
See weimar germany for inevitable results @Serg97
@BikerPetehall70 Right ON!!!! The German debt did not just go away, as Ricky seems to think it would!!!!
Posted by Weltansichtwhat can I say.....
Posted by JohnHoukYOU Observe Perilous Days YET There is Victory in Jesus SUMMARY: If you are an American Patriot and a Bible-dedicated Christian, you probably have a sense we are living during perilous days.
Posted by JohnHoukSafe & Effective Lie Exposed by Trust-The-Science Liars SUMMARY: Are you still reading/seeing/hearing the mRNA Jab is “Safe & Effective”?
Posted by Weltansichtreminds me of the Kansas song "Carry On" lol
Posted by JohnHoukTrump Election Invincibility IF Changes mRNA Stand SUMMARY: JUST TO BE CLEAR! I AM VOTING FOR THE POLITICALLY PERSECUTED President Donald Trump on Election Day 2024.
Posted by JohnHoukA Woke Jesus?
Posted by JohnHoukAn Intro to Ed Decker May E-Newsletter & Hamas & Decker Thoughts SUMMARY: Ed Decker (born 1935) is an ex-Mormon with an evangelistic agenda to expose the errors inherent in Mormonism.
Posted by JohnHoukWhen ACTUAL History is Forgotten, Antisemitism Resurges SUMMARY: At age 67, I remember younger days watching old WWII movies and Documentaries showing the atrocities Jews went through via The Final...
Posted by FocusOn1The founder of israel, david ben gurion, an atheist communist, admired lenin
Posted by JohnHoukDO NOT Allow Medical Tyranny to Continue – Refresher Videos Pt.
Posted by JohnHoukAn Intro to Dr.
Posted by JohnHoukDO NOT Allow Medical Tyranny to Continue – Refresher Videos Pt.
Posted by Weltansicht....and oppossums eat all the ticks....
Posted by JohnHoukAmerican Intel Spies & Withholds Info from Trump! WAKE UP AMERICANS! SUMMARY: Americans who still support The Democratic Party (which should be re-labeled Dem-Marxist Party) are supporting spying ...
Posted by FocusOn1Clown world: when people cant figure their shit out, they run to a woman who says she doesnt know what a woman is and wears a black robe for guidance.
Posted by Sensrhim4hizvewzHow quickly it all turned.