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>Money printing is always inflationary. Either it causes CPI inflation immediately or it's stored up for later. Japan and Europe disagree.
by x87678r 6y ago
>Money printing is always inflationary. Either it causes CPI inflation immediately or it's stored up for later.
Japan and Europe disagree.
- cryptica 6y agoWealthy entities in those countries must be accumulating surplus fiat currency at a loss to themselves in order to suppress CPI inflation (maybe to artificially prevent the economy from crashing). But that's temporary. Whoever these entities are will eventually realize that this loss in value is not going to be recoverable and they will be forced to dump their fiat eventually. All the stored up CPI inflation will be released in a very short amount of time. You can't increase the supply of a currency (or anything else) without it losing value unless the supply of goods can keep up with the supply of currency but that doesn't appear to be the case these days. The best you can do is hide the surplus currency from the markets as long as possible. But eventually, something will happen which will force the hidden currency to enter the markets. Also, there is a myth that technology is causing exponential growth in efficiency but the reality of the last 10 years is that everything has been getting more bureaucratic and less efficient (I'm a software engineer so I've seen this first hand).
- whytaka 6y agoWhere is that money going then?
- neilwilson 6y agoIt can't go anywhere other than Japan or the Eurozone. What it ends up as is savings - bonds. When those bonds are spent they generate a sequence of further transactions and taxation that pay off the bond. Bonds are essentially a store of taxation as well as value.