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That sounds like the answer to your own question, no? The root comment proposes that "They just create the money they need, the never-to-be-paid-off deficit gr
by adolph 5y ago
That sounds like the answer to your own question, no?
The root comment proposes that "They just create the money they need, the never-to-be-paid-off deficit grows, the value of the dollar shrinks, and we move on." How is that incompatible with an inflation target that "allows companies to plan ahead?"
- bluedevil2k 5y agoNo, not at all. How much will they print? 23% of GDP? 18% of GDP? That’s $1T difference in cash. How will that affect inflation? Who knows, no one can predict that. A shrinking dollar is bad for imports and America has a huge trade deficit right now, it would cripple international trade.
- landemva 5y agoTough luck that until some months ago, USA was a net energy exporter. Definitely do not want to ask why energy exports flipped to energy imports. Recall that a few days ago Joe asked Saudis to help out by pumping more oil.
- adolph 5y agoI guess it is all academic since inflation acts as a tax on savings. Going to get taxed one way or another.