It sure is.
I just keep waiting for a regular poster to pop up with “Haha! Got you all!”.
And we are back too: why is inflation at 8.3% if all the printing of money was not a major contributor.
See quantity theory of money. No mention of gold standard here:
So you not think the massive supply chain breakdown coupled with a pandemic had anything to do with it? Not to mention all those greedy corporations who used inflation as an excuse to raise prices.
So, you think printing money had nothing to do with it?
Various factors contributed. This isn’t a zero sum game.
What happened to all that inflation when the banks were being bailed out to the tune of trillions and the trillions that has been pumped into the stock market? Hmmmmmmm…
I guess you are not familiar with quantitative easing or where or how those bailouts were structured.
To prevent the economy from sliding into depression, the Fed turned to a new tool, quantitative easing. It worked like this. The Fed purchased assets like mortgage-backed securities and U.S. Treasury notes from banks, crediting their reserve accounts at the Fed with new money created at the stroke of a computer key. This provided banks more funds in excess of the minimum reserves banks are required to keep on deposit with the Federal reserve. This gave banks access to more money, which in turn helped shore up banks’ precarious financial situations and encouraged them to make more loans.
This is not the same as just handing cash to people (general public) with no repayment.
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Money supply, the pandemic, and supply chain issues are all a part of current inflation levels and it’s very problematic for several reasons.
- Freshly printed fiat infused into the system devalues USD.
- The pandemic further shifted demand from brick-and-mortar infrastructure to e-commerce.
a. This resulted in numerous problems. The main one for the purpose of this post is a shift in transportation demand. - New money infused into the economy → increased consumer demand → lagging increase in supply / existing supply issues = Demand-pull inflation.
IMO, the only reason inflation isn’t far worse is because of the deflation impact COVID had in 2020.
We are currently (at least in part) experiencing what is called the “demand-pull” effect on inflation. It occurs when the money supply increases driving consumer spending up, In other words, more money triggers a “pulling” effect on the price of goods/services resulting in inflation.
We have seen a significant increase in USD in circulation
We have seen a significant increase in the consumer price index.
And we’ve spent a metric shit ton on COVID
There is also a cost-push effect around certain commodities, particularly related to energy. This is, in part, also the result of supply chain issues.
It is not simply the printing of money, but it is a significant factor and it will almost certainly be a major contributing factor in the coming recession.
If he’s talking about TARP every penny plus interest was paid back.
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Yep, hence they were loans and not just free money tossed out there like 100% forgiven PPP loans and stimuluses.
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I’m pretty sure TARP was under a trillion too. I don’t know where “trillions” is coming from.
The CBO estimated that the subsidy cost of the $247 billion in transactions before December 31, 2008 amounts to $64 billion. As of August 31, 2015, TARP is projected to cost approximately $37.3 billion total—significantly less than the $700 billion originally authorized by Congress.
Really far from a trillion even lol.
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Do you actually believe the banks and stock market paid back trillions?
Yes and this is for chumps who get their news from the mainstream. You actually believe that TARP was the only form of bailout? It wasn’t in the billions but the trillions.
Source?
The only source I see saying this is Matt Taibbi.
*And I don’t think he’s talking about TARP.
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Even 247 billion is small compared to the 4+ trillion spent on COVID.
I doubt @castoli understands how big 1 trillion actually is.
@castoli
Continue pushing for your dystopia that will never happen. There’s a reason many dystopian novels are framed around horrible conditions for people.
“Short of an all-out blowup, thinning liquidity comes with a host of other drawbacks for investors, market participants, and the federal government, including higher borrowing costs, increased cross-asset volatility and — in one particularly extreme example — the possibility that the Federal government could default on its debt if auctions of newly issued Treasury bonds cease to function properly.”
The next financial crisis may already be brewing — but not where investors might expect (msn.com)
I thought the Federal Government could never default or run out of money? Well it can if Treasury Bonds take a shit.
And since the money will always be paid on bonds this won’t happen. So no matter how large the debt is people still buy U.S. treasuries, not because of the return but because of the safety.