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Most of your differences involve just creating money out of thin air more. I don’t see how that will fix it. What it reminds me of most are things like assign
by JohnJamesRambo 7y ago
Most of your differences involve just creating money out of thin air more. I don’t see how that will fix it.
What it reminds me of most are things like assignats before the French Revolution. But at least those were said to be based on something (seized church land). We make our money up based on nothing right now. It’s absurd and after it all falls it will seem so obviously stupid to historians.
https://en.wikipedia.org/wiki/Assignat#France https://en.wikipedia.org/wiki/Assignat#France
- dustingetz 7y agoNot creating money out of thin air. Creating it out of military
- deleted 7y ago[deleted]
- koonsolo 7y agoNot printing money could be far worse. Check out the Ray Dalio video on how QE is used for stability. https://www.youtube.com/watch?v=PHe0bXAIuk0 https://www.youtube.com/watch?v=PHe0bXAIuk0
- agentultra 7y agoI'm not an expert but I don't think our money is based on nothing. As I understand it it is based on the relative debts and wealth of other nations [0]. [0] https://www.mentalfloss.com/article/12715/why-did-us-abandon-gold-standard https://www.mentalfloss.com/article/12715/why-did-us-abandon...
- SpicyLemonZest 7y agoModern recessions aren't like famines, where there simply isn't enough stuff to go around. We have plenty of stuff, our productive capacity is still available, and the problem is just getting it allocated properly. Magic money creation based on nothing can help with that kind of problem.
- brenden2 7y agoThat would be true if there was wealth distribution happening, but there isn't. Most of this money goes into the hands of the richest people.
- SpicyLemonZest 7y agoI'd love to see poor people have more money, but I don't see why that's a critical feature for a plan to keep the economy running well. There are many important problems that just don't have much to do with income inequality.
- brenden2 7y agoThe economy only works when everyone has money to spend. If 30% of the population is broke, that's going to cause a huge drop in economic activity. Most economic activity is driven by consumer spending.
- SpicyLemonZest 7y agoAgreed. Current response plans won't handle 30% of the population being broke; if that happens something very different will be needed.
- atomi 7y agoThe way you fix that is by redistributing wealth. The government is doing this in a roundabout way by borrowing the money for a massive stimulus and recouping that money by increasing taxes on the wealthy later - likely with a Democrat administration so Republicans can maintain their rhetoric.
- kavalg 7y agoIt will fix it by making all of us pay the bill. In the long run QE will lead to nothing but inflation. In the beginning you may not notice it, but then after a while you will start asking yourself, why is real estate so insanely priced. And then medical care, cars etc. And while a single/small country can't do QE for far too long before going into hyperinflation and people resorting to another currency / currency board, FED+ECB can actually go much longer. Scale matters. On the moral side though, I find it quite totalitarian an non-democratic to do QE at such a scale and in such away. Just ask yourself where the newly created money supply will be poured into. I bet the SMBs won't see much of that.
- kavalg 7y agoWhy the downvote? I am not being emotional. Just want to understand which of the things I mentioned seem incorrect. Here is already some indication about the money NOT going to the SMBs. [1] https://news.ycombinator.com/item?id=22931339 https://news.ycombinator.com/item?id=22931339