4 ms·
Your comment makes no sense outside of superficial Marxism, but I'll comment on one line: > What I don't quite understand is why don't they just print a few mo
by redis_mlc 5y ago
Your comment makes no sense outside of superficial Marxism, but I'll comment on one line:
> What I don't quite understand is why don't they just print a few more trillions?
To a certain point, as the USD is the global currency, we can do that. (And we did during the corona pandemic.)
After that point, printing money causes people to lose confidence (since it's just paper, and not money) and find another currency. Then you can't print any more without causing the currency to devalue.
This would be very bad for 2 reasons:
1) As the global currency, the US benefits by about 1% to our economy. You could argue this pays for our military expenditures.
2) We would have to make debt payments to support the currency. After a certain point, that becomes impossible.
FYI: the CCP is trying to replace the USD, and will exploit weaknesses in how we manage the USD.
Maybe you're young, but I can remember 20% inflation/stagflation back in the day. It was a very uncomfortable feeling for people to lose control of the value of their savings and prices for imports. You want to avoid that at almost any effort.
Pundits for decades have said that the fundamental weakness of democracy is that voters can vote themselves free money. This is what the Biden administration is actually doing now.
- Alekhine 5y agoI'm pretty sure he's joking
- redis_mlc 5y agoBoth my post and the GP's post were not joking. It's common when talking to young people to hear "just print more money." It works, until it doesn't. For those who don't know how bad hyperinflation can get, imagine putting your teen daughter on a street corner in the tourist district (ie. Cuba.) To learn more about how a country can ruin its finances, watch this video for how Japan screwed up. The Japanese govt. currently owns 70% of corporate debt and a large part of their stock market, so effectively there's no public capital market (what you read in a financial newspaper is fake): "The Economy of Japan: how a Superpower FELL from Grace in Four Decades" https://www.youtube.com/watch?v=pU_yyadYgG8 https://www.youtube.com/watch?v=pU_yyadYgG8
- angelzen 5y agoI have already lived through a decade of (hyper)inflation in a different country. At the time the grassroots solution was to establish a shadow economy based on USD. I find it very interesting, in Chinese proverb kind of way, to see how the world will manage the destabilization of the USD that is already underway.
- redis_mlc 5y agoBiden supporters are to the left of Stalin - he needed the money to industrialize and build a modern military, which he accomplished just before Germany invaded in WW2, while Biden is exiting a pandemic. What the $3.5 trillion budget is about is not money, it's about the Marxist policies hidden in its 10,000 pages that nobody has time to read. (Biden's "progressive policies" that Joe Manchin won't go along with.)