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Thought experiment: You print a trillion dollar bill and throw it in a underground vault. You look around. "Hey no inflation" so you print some more. You keep t
by willcipriano 6y ago
Thought experiment: You print a trillion dollar bill and throw it in a underground vault. You look around. "Hey no inflation" so you print some more. You keep this up for a while. Years pass and someone finds the vault and begins to spend the money inside, what happens?
Right now much of that printed money is sitting in stocks and bonds, what happens when that is no longer a great place to be? What if those dollars decide they want to be used to buy say houses, instead of bonds?
- 015a 6y agoExactly this; the Fed has been printing like crazy, but the new money has relatively low velocity. Velocity is required for inflation, not just the money itself. Look at stock market prices of the past ten years; its the largest bull market in US history. The US Dollar isn't getting inflated by the printing; the stock market is.
- frongpik 6y agoThere's too few building permits being issued these days.
- nradov 6y agoThose dollars have been used to buy houses. Residential real estate prices are up in most areas.
- imtringued 6y agoYou know, the idea that we have run out of profitable investments is absurd when you consider the massive housing shortage in major cities. Is the truth that we simply banned all those investments and companies like Uber are trying to work around that backwards legislation?
- supertrope 6y agoEven with the benefit of a society built in the image of the automobile (toll free roads, free parking everywhere, highways, sprawl) Uber is not profitable.