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"Excess savings" are going to panic and go to "the mattress" at some point, when it becomes clear "excess savings" are invested into a de-facto Ponzi scheme whi
by m0zg 5y ago
"Excess savings" are going to panic and go to "the mattress" at some point, when it becomes clear "excess savings" are invested into a de-facto Ponzi scheme which has no bearing on the real world at all. See e.g. 2008 or 2001 before that.
- hn_throwaway_99 5y agoI mean, that's my exact point. If there is anything 2001 or 2008 taught the world, it's that the Fed will run the printing press full bore if there is a big downturn, so putting cash in your mattress is the absolute worst place for it to be.
- m0zg 5y agoIt already did run it full bore for the past year and a half - US public is just not paying attention. At some point running it full bore will turn the US into Zimbabwe, currency-value wise. That will not reflect positively on the economy as a whole.
- jjeaff 5y agoThey have been buying up corporate bonds, which is not the same as printing money and spending it. They simply have to slow down and eventually stop buying bonds and as they are paid back, that money goes back of the ledger. I.e. it's destroyed.
- m0zg 5y agoAs I said above, a lot of surprised Pikachu faces incoming.
- machiaweliczny 5y agoOk, so you claim rockets in space and change of whole industry to electric cars doesn't have impact on the world for example?