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To: politicket

I don’t believe deflation is a possibility. Some people look at metrics that are no longer relevant, like velocity of money, and are convinced deflation is coming. Then I remind them we are in new territory with direct government payments to the voters with money from thin air, bypassing the banks altogether. The voting public is officially hooked on these payouts, and will punish those that don’t offer them in the future.


102 posted on 01/17/2022 10:01:16 AM PST by Codeflier (Please stop calling these violent totalitarian collectivist Democrats, liberals. )
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To: Codeflier
...direct government payments to the voters with money from thin air, bypassing the banks altogether.

It doesn't work this way.

Banks are generally the primary way that the money supply grows - through loans.

Consumers and businesses also increase the money supply through use of credit cards and lines of credit, etc.

The Fed has increased the money supply in the past, through Quantitative Easing - using the banks as an intermediary to the corporations.

124 posted on 01/17/2022 11:25:39 AM PST by politicket
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