bripat9643
Diamond Member
- Apr 1, 2011
- 170,163
- 47,307
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How does the economy sign this loan?The Fed loans it to the economy through their primary banking system.
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How does the economy sign this loan?The Fed loans it to the economy through their primary banking system.
The Federal debt contributes to inflation, thanks to the Fed.
The Federal debt contributes to inflation, thanks to the Fed.
Are we back to that?
Milton Friedman talked about minimum wage laws:I wonder if there's a correlation between the people who think printing money doesn't cause inflation and those who think minimum wage laws have no negative repercussions.
If you have a large pool of unskilled workers wages will be low. It's a supply and demand thing as well as a rite of passage for entry level workers (been there, done that).Milton Friedman talked about minimum wage laws:
"Generally. Because I think the government solution to a problem is usually as bad as the problem and very often makes the problem worse. Take, for example, the minimum wage, which has the effect of making the poor people at the bottom of the wage scale—those it was designed to help—worse off than before."
i think you need to update your understanding of economics.You are mixing your concepts up. When the government deficit spends it has nothing to do with the Fed. Only the Fed can create money. They can buy bonds from third parties which is paid for with printed money. Again worth noting that the extra money has slowly been withdrawn. It was essential for people so they could pay their bills.
The inflation is a result of the lack of competition in many industries. These are the sectors that are seeing the largest amount of inflation. The financial statements confirm this as most companies are massively beating their previous profits. What we need are new anti-trust laws to break up these oligopolies or regulate them. The problem is that Republicans and Democrats are obsessed with tech companies. Tech companies are not causing inflation.
here you go sally...For the last 10 years or so the increases in M1 (and artificially low interest rates) have been offset by increased productivity.
^
No kidding. Very convincing.......
40 years of economic evidence and history put to the lie because you said "not really."
If you can show that productivity has increased as much as M1 over the last 10 years.....go ahead.
I'll help you start.
View attachment 623058
M1 | FRED | St. Louis Fed
View a measure of the most-liquid assets in the U.S. money supply: cash, checking accounts, traveler's checks, demand deposits, and other checkable deposits.fred.stlouisfed.org
Looks like M1 went from about $2.2 trillion on March 5, 2012
to about $20.6 trillion on Feb 28, 2022.
Let's see your offsetting increased productivity over the same period.
Look closer..
Up until Trump then Biden flooded the monetary system with trillions...
Try to comprehend beyond, or not.
Yes.This is often discussed in a variety of ways. I remember a few years ago there was this idea floated that Obama could order the mint to create two $10 trillion coins, then have them deposited into the federal reserve to pay off the debt. The pandemic emergency payments and unemployment benefits have often brought the conversation to whether we're simply making money out of thin air.
So let's talk about it. Do you believe that printing money will will cause inflation? Why, why not?