When the Federal Reserve doubled it's monetary base from September 2020 to December 2021, you think that isn't a lot of extra money?I don't think the US government prints a lot of extra money. — Tate
That was then bought by the Federal Reserve, right.They sell treasury bonds to pay for things like the COVID response. — Tate
When the Federal Reserve doubled it's monetary base from September 2020 to December 2021, you think that isn't a lot of extra money? — ssu
It's not the foreigners who have continued to buy it: — ssu
No, it isn't an important distinction. With money printing I don't mean the actual printing of money, although they do that too.I just meant they borrow it, they don't print it. Maybe that's not an important distinction? — Tate
Learn just what?We'll see if they repeat it or learn from the lesson. — Tate
Joe Manchin isn't looking so stupid all of the sudden. — Tate
Hence, it's not at all surprising that who has talked about the issue most clearly is Vladimir Putin: he genuinely has nothing to lose on this, and will be happy about the possible demise of the dollar / the Western financial system. — ssu
Ah, the decadence of the West!A lot of Americans feel the same way. 'Let it all go up in flames and start over, or not even that, just let it all be ended'. It's the nihilism Olivier5 was talking about in the Ukraine thread. — Tate
Well, both Americans and we foreigners likely don't understand just how much of that wealth and awesomeness of the US economy is based on the position the US dollar enjoys — ssu
Not actually. There's no alternative now for the US dollar. For now.That's not controlled by the US, though. The whole global economy is doing that, much of it by the will of the Chinese. — Tate
How long should you believe this "supply shock" argument? — ssu
Before it was Covid. Fine. But now? — ssu
War in Ukraine? Really? — ssu
However, it seems that all those who blame inflationary pressures on commodities continue to ignore the massive price increases in housing, healthcare, and education, as well as in goods and services where there was evident overcapacity.
Yet history and economic history point the finger on government policies. — ssu
After the bursting of a speculative housing bubble inflation won't pick up as the bubble bursting is highly deflationary. Banks and the financial sector are the ones in focus and they won't continue lending as they did before. And the inflation the QE created basically went afterwards to asset inflation, to refilling the bubble.Again— inflation was predicted after all the spending in 2009. Didn’t happen. — Xtrix
Why do think so?3 years later, inflation happens after an unprecedented global pandemic — inflation that’s occurring all over the world — and the same believers say “See? Told you so.” It’s simply nonsense. — Xtrix
After the bursting of a speculative housing bubble inflation won't pick up as the bubble bursting is highly deflationary. — ssu
Why do think so? — ssu
Some have, that's true. I do know those permabears. They have their niche audience, just like every perma-something or conspiracy theorists has. And if they change their minds, oh boy, their audience will revolt!Because they’ve been screaming about debt and inflation for decades. A broken clock is right twice a day. — Xtrix
But if you think inflation is just a conservative talking point, which I would correct it is when the conservatives aren't in power, then there is not much else for you to contribute in this thread.All this is, in the end, is a conservative talking point. It’s an excuse to ignore supply-side issues like line distributions, price gouging, profiteering, and oligopoly. Rather they want us to believe it’s because some poor people got $1200 bucks and wages increased by 4%. Give me a break.
Complete bullshit. — Xtrix
But if you think inflation is just a conservative talking point, which I would correct it is when the conservatives aren't in power, then there is not much else for you to contribute in this thread. — ssu
With inflation, wage increases are usually viewed as the bad guy. And of course the government did basically shut down businesses during the pandemic, so the stimulus checks should be a truly exceptional case. The real question is will they be so exceptional.No, I didn’t say inflation is a talking point— I said attributing inflation to raising wages and handing out stimulus checks is a talking point. — Xtrix
I agree. Those who get the money before the inflation kicks in are the real winners. And usually the wage earners are the last to demand higher compensation due to the higher prices. Yet there's ample amount of literature of wage inflation.Right— and it’s complete nonsense. Anyone who buys into that really just hasn’t looked into the matter closely enough. — Xtrix
Devaluation (or revaluation) of a currency is a different thing. Remember that other countries had similar policies as the US and in many cases the US dollar / US markets are thought to be the most safest (still).If your point is that American pandemic payouts have now devalued the dollar, I don't think it works that way. — Tate
Chairman Jerome Powell has said that US government debt is on an 'unsustainable path' while admitting that he underestimated the threat of inflation and warning that a recession is possible.
Powell's remarks came in testimony before the House Financial Services Committee on Thursday, as the powerful Fed chair wrapped up a second day of appearances on Capitol Hill.
'The US is on an unsustainable fiscal path, meaning the debt is growing faster than the economy,' said Powell. 'By definition, that is unsustainable.'
As the war against Russia enters its seventh month, Ukraine is stuck between a financial rock and a hard place as it seeks to stay afloat while fighting off Moscow's invading forces.
Tax revenues have plummeted due to an economy in free fall while military spending has skyrocketed, leaving the government facing a budget shortfall of $5 billion (€5.02 billion) per month.
To make up for the lack of cash, the country's central bank has effectively been printing money — buying government bonds to the tune of $7.7 billion over the past six months. The Financial Times reported that the printing presses effectively created $3.6 billion in June alone.
Get involved in philosophical discussions about knowledge, truth, language, consciousness, science, politics, religion, logic and mathematics, art, history, and lots more. No ads, no clutter, and very little agreement — just fascinating conversations.