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> Other than printing money and risking a cataclysmic devaluation The US government would need to print an insane amount of money to have a tangible devaluatio
by mywittyname 7y ago
> Other than printing money and risking a cataclysmic devaluation
The US government would need to print an insane amount of money to have a tangible devaluation impact. Even more so when the money creation is intended to offset deflationary pressures due to a economic contraction.
Considering the GDP of the US is ~$20 trillion, I bet we're probably talking about $2-4 trillion of printed money, in addition to deflation offsets, over the course of a year before the noticeable market inflation occurs. That would be like spending the entire annual budget of the US military five times over.
- wcoenen 7y agoThings can happen very fast. The fed printed $128B in just two days to address the repo market crisis. https://markets.businessinsider.com/news/stocks/fed-repo-injects-billions-into-market-first-time-in-decade-2019-9-1028534289 https://markets.businessinsider.com/news/stocks/fed-repo-inj... Granted, overnight loans are not permanent injections of money. But it serves as a reminder that there is no speed limit on the virtual printing press of the fed.
- rightbyte 7y agoAt some point the banking system will crash due to lost math precision I believe. The speed of porting everything to arbitrary precision programs limits inflation, unless the gov start cutting zeroes of the bills.