To: metmom
There still ain’t such thing as a free lunch. The two trillion dollars the federal government just borrowed must be paid back somehow. The traditional way the US government does that is with inflation. And at least half the two trillion will be lost to corruption, which means a greater proportion of it than normal will go to inflation as opposed to any benefit to the economy.
313 posted on
03/30/2020 5:08:30 PM PDT by
Thud
To: Thud
The traditional way the US government does that is with inflation.
These days the economy is so much more complicated than it was in the olden days.
I will give you a very simple example.
Suppose you have a credit card with a thousand dollar limit and you max it out....and you are tapped out for other cash as well.
Suddenly your credit card company calls you up and tells you your credit limit just got raised to $100,000.
You just got new money, a lot of it.
And, .gov didn't print it!
The financial markets these days work like that.
The availability of credit across all types of credit instruments _is_ the money supply--and it is _very_ difficult to keep track of that stuff.
Today, if private credit contracts, unless .gov credit increases to an equal amount, we would actually have deflation.
316 posted on
03/30/2020 5:14:15 PM PDT by
cgbg
(BOLO--escaped SNF resident--Joe Biden)
To: Thud
I know.
Too much dependence on the government has created a monster.
349 posted on
03/30/2020 5:58:52 PM PDT by
metmom
(...fixing our eyes on Jesus, the Author and Perfecter of our faith...)
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