Printing money doesn’t create debt.”
It does create inflation, however.
Printing money doesn’t create debt.”
It does create inflation, however.
Well yes, that’s the goal. The FED has an inflation target of 2% (as they define inflation). I’m not saying the FED has good policy, that’s a different discussion.
The FED printed $30 trillion? That’s much less than the wealth that was destroyed thourgh asset and labor deflation since 2007. So, the net effect of the financial crisis and the money printing has been deflationary. Without the printing we would be firmly in deflation. (Again, not commenting on the efficacy of the policy, just noting it.)
I never melt down over the rightness or wrongness of policy, that is a waste of time. Govt policies are things to work around, that’s all. One takes advantage of policy when possible, and minimizes damage from policy when profit isn’t possible.
I estimate the FED will have to walk the current tightrope between inflation and deflation for another 9-11 years. Whether it can do so is unknown.
Some contingency planning is advisable.
bkmk