2 ms·
> The math eventually must catch up with us. I think it is flawed math if you completely ignore substantial parts of the equation. AFAIK leading analyses in le
by protoman3000 6y ago
> The math eventually must catch up with us.
I think it is flawed math if you completely ignore substantial parts of the equation. AFAIK leading analyses in leading economic scientific journals have discussed the excessive spending of inflationary countries as the and only root cause for the inflation.
But, these leading papers often don’t even mention that the worlds biggest economies at these times (e.g. US) have cut ties and imposed economic sanctions on these countries just before the excessive spending and hyperinflation started.
How are these countries then able to buy goods on the international market denominated in USD, if they are basically cut off from the US Dollar monetary system? It’s almost as if an excessive shock of raised import prices propagates to a general increase in prices. This would mean economic sanctions imposed by the US on to Chile put them into a crisis, not their socialist government from back then with its spending programs.
But wait, that would not fit into the narrative so let’s just claim that these countries short term reaction to these shocks (print enough money in hopes to stabilize the economy) is the cause of the shock and hide it behind a wall of math that nobody wants to look at anyways.
Excuse me, I don’t have the classics at hand now so I can’t point sources.
- 14 6y agoWell I agree that the initial cause may not be the printing of the money itself, but it is hard to deny that “print enough money in hopes to stabilize the economy” is not a problem. It takes a bad situation and makes it worse. Because even if the US and Chile are having issues and Chile then prints 1 million for all its citizens and then comes to my county and they all say we have a million now we want to spend in your country it doesn’t really work. I think my point is it is two separate matter yes there was something crippling their economy ie sanctions but printing money still was the cause of inflation. Another option would be look at what is causing sanctions and work to resolve that.