Here’s the formulae for GDP. “Gross Domestic Product (GDP) includes consumer spending, government spending, net exports, and total investments. “
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That’s a sentence, not a formula.
GDP = C(onsumption) + G(ovt Spending) + I(nvestment) + (exports - imports)
Nothing wrong with the sentence, but there is always danger using english to describe numbers.
Now then . . . the ever popular word . . . collapse . . . and how things in history always do this or that.
The Federal Reserve started 1913. History started then as other countries went in that direction for their central banks.
When you have infinite money, as a central bank does, there is no such thing as collapse. Quantitative Ease is unstoppable. Think it guarantees inflation? QE went on and on and on from 2009 to 2020 and inflation? 0.
The Soviet’s Central Bank was constrained in the 1970s-80s to only create money aligned with the Interior Ministry’s 5 yr plan. When oil price fell and they needed money to be created, they could not do it. By law.
That law has been erased. Russia cannot collapse. They have infinite money.
Quantitative easing in the United States, because the dollar is the world’s reserve currency, forced our economic problems on those others holding dollars. (Nice trick if you can do it.)
Russia can produce as much money as they want. But the problem with the Soviets wasn’t that they couldn’t print money, they did. It was that nobody wanted the money. Everyone who could was surviving the Soviet catastrophe by bartering. That’s great, so long as you have something to barter. After a while what is left to barter?
Remember -- "A '60 Minutes' episode that aired on Sunday raised eyebrows after the Minneapolis Fed President said that there is an 'infinite amount of cash.' This was said as reassurance, but many didn't interpret it that way. The Federal Reserve has been active trying to calm fears recently regarding everyday people's savings. In a recent interview on '60 Minutes' Minneapolis Fed President Neel Kashkari assured the public that their money is safe."
Federal Reserve Claims It Has ‘Infinite Amount of Cash’ Be(in) Crypto, 27 March 2020