Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: BeauBo

“Russia has its own Central Bank, just like the Fed. To date it has printed far less money than QE over 10 years accumulated.”

>>That is far from true. Russia expanded their money supply comparably to other major countries during COVID, but unlike The USA, EU, Japan and others, it continued printing even more aggressively since February of 2022, while the USA and other major economies actually contracted their money supply (M2) a few percentage points (3% in the USA).
>>

How can I say “over 10 years accumulated” and then you reply that it’s not true and start talking about an entirely different timeframe? It is true. I specified the timeframe. You can specify your own, but not when replying.
In fact, we can widen the timeframe to make it even more clear.

Go all the way to the 2007 worldwide financial crisis. Add up the newly invented QE. 17 yrs of QE. You can use dollars if you like, or you can use any other currency unit as a % of GDP in that currency unit. It’s not even close, and I suspect you know this. QE is what it is. It’s not escapable.

As for M2, you will need to do some study since the M2 definition in Russia differs from the US definition.

There is no law of the universe, btw that says inflation derives from money supply. It’s profoundly claimed by the world of Economics, but there are zillions of exceptions. In fact, let’s look again at 2007 onward, when interest rates were zero and, indeed, below zero (specifically Germany), inflation was modest though not zero (essentially impossible).

But of course it is possible. It is a substance created from nothingness. No rules need apply.


23 posted on 10/29/2024 3:41:23 PM PDT by Owen
[ Post Reply | Private Reply | To 22 | View Replies ]


To: Owen; BeauBo
freeper BooBoo [aka Wimpy] will gladly sell you a prediction for the future if you grant him a credibility cheeseburger today.

I refuse to grant him credibility - as you noted, "and then you reply that it’s not true and start talking about an entirely different timeframe".

It's his whole schtick on FR.

24 posted on 10/29/2024 4:22:52 PM PDT by kiryandil (Kraft durch Freude! - The Kamunist and The Walzrus )
[ Post Reply | Private Reply | To 23 | View Replies ]

To: Owen; kiryandil

So in a ten year timeframe, US M2 money supply less than doubled (11.5 to 21..2), while Russian M2 more than tripled (30 to 106).

Since 2007 US M2 roughly tripled, while Russian M2 increased twelvefold, from 8.7 to 106

https://fred.stlouisfed.org/series/M2SL
https://tradingeconomics.com/russia/money-supply-m2

What is happening now (since the 2022 invasion) is worse for Russia, than even those timeframes, not only because because the rate of change is so high, but also because they are inflating while the major economies are moving in the opposite direction, further widening the gap in real value between the ruble and the hard currencies of the world.

When everyone was reacting similarly to the 2008 financial crisis or COVID, relative value was not impacted as much, but flooding out new rubles while the major currencies supply is restrained, is having the expected effect on the value of the ruble, and the risk premium that investors put on that currency.


26 posted on 10/29/2024 5:07:10 PM PDT by BeauBo
[ Post Reply | Private Reply | To 23 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson