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EU Countries have similar excessive spending programs and the Euro is not the worlds reserve currency, yet we don’t see Venezualian Hyperinflation. How is that
by protoman3000 6y ago
EU Countries have similar excessive spending programs and the Euro is not the worlds reserve currency, yet we don’t see Venezualian Hyperinflation. How is that reconcilable with this theory?
- dismalpedigree 6y agoThe money is not going into productive use in the hands of most recipients. Its being used to pay down debts owed to the creditors in large scale. Debt loads have decreased significantly with the money distribution. Those who end up with the money struggle to find assets to invest it in, which is why the stock market, private equity markets, and all other asset markets are heavily inflated now. The money had to go somewhere.
- Leherenn 6y agoDoesn't the money has to go back into the "real" economy at some point, i.e. fill a need besides having a bigger number in the bank account/Forbes list? Or are the recipients of all this wealth already so rich they don't even need another sport car, yacht, villa by the sea or even another forward looking company? I have to admit I don't understand being so rich I don't know what to do with my money. It feels like even if I had billions, I'd try to be an Elon Musk and use my money to create something. Or maybe even buy and bankroll a NGO, a sport team, artists, whatever. Is this already saturated, are all the opportunities that don't look like a sure scam already taken? I feel so out of touch with this world, I struggle to even comprehend it.
- dismalpedigree 6y agoI’m sure the wealthy are spending some, but on the whole people spend significantly less of their money as a percentage of income the more wealthy they are. All their needs are met. They can splash out cash for some things but not that much trickles down.