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Well when 80% of all US Dollars were "printed" / created in the last 2-3 years massive inflation will follow What we are seeing is the predictable result of th

Well when 80% of all US Dollars were "printed" / created in the last 2-3 years massive inflation will follow What we are seeing is the predictable result of the classic monetary models, and a rejection of Modern Monetary Theory which linked limits of government spending to the availability of real resources, like workers. Which is why you see people like The Treasury Sec saying the Economy is good because of employment numbers Classic Model of economics predicted this, MMT ignores the realities of economics

CraigJPerry 4y ago
>> What we are seeing is the predictable result of the classic monetary models Respectfully, models that are known to be wrong, as all models are - they are models after all. Austerity - where has that ever worked? Post-war Germany and... ??? I mean it's constantly tried everywhere (Greece is a good recent example of its futility). Classic monetary models clearly predict it should work, we've tried it hundreds of times in different countries over the past ~100 years, and it's worked once. Maybe we just need to try extra super duper hard the next time? My skepticism rises when i hear people confidently proclaim their economoic model predicts anything at the macro level. What we're seeing is a lazy attempt to ignore the models are not useful. If prices stay low for 5 more years than the models predict then we are told by the over-confident types that we should just wait a little longer to see the effect but they're coming. If prices go up then "AHA! Justified, i told you so". Prices can ONLY go down, up or stay the same - if you wait long enough of course they go up! There's a big wooly gap between alleged cause and effect that we're just supposed to not question when people confidently tell us their model predicted the outcome.
gghhzzgghhzz 4y ago
Prices are not rising because people have too much money and are over purchasing food and energy just to show off to their neighbours. If that were the case then there are things that would work. Increase taxes on income, unearned income, wealth and excess profits to take money out of the economy (MMT theory would support this if the issue was genuinely too much money) Introduce price controls and rationing on food and basic services including energy and housing to stop profiteering.
- phpisthebest 4y ago
  >>Prices are not rising because people have too much money and are over purchasing food and energy just to show off to their neighbours. I dont believe I said that in any statement, that is red herring and strawman in one. Good job... Most of the expansion of the monetary supply has been doled out in the form to debt not cash. However buying goods (Cars Home, etc) with massive amounts of debt still causes inflation Of course Supply chain issues account for some inflation as well, but not all of it. >> Introduce price controls and rationing on food and basic services In the entire history of the world, that has never worked, nor will it ever work
- ymolodtsov 4y ago
  > Introduce price controls and rationing on food and basic services including energy and housing to stop profiteering. Here are 100 roubles for you, comrade.
Aeolun 4y ago
I guess? But if there are 5 times more dollars to buy why do they become more expensive (for me, outside the US)? That doesn’t seem intuitively correct to me.
- phpisthebest 4y ago
  Because the US Dollar, today, is the World Trade Currency, what he US does with monetary policy effect the world Which is why you see China, Russia and other nation using the current opportunity to attempt to parallel economy to the one based on US Dollar
31835843 4y ago
>Well when 80% of all US Dollars were "printed" / created in the last 2-3 years massive inflation will follow Be careful. This theory tracks for regular currencies, but gets distorted (note: I didn’t not say that it doesn’t apply, only that it isn’t as strong as you say) when the currency in question is the reserve currency for the world. Classic Model didn’t predict this, because “this” is a totally bonkers scenario. Inflation is running hot (additionally) because supply chains have been torched (China and Russia) just at the time when demand came roaring back (the world minus China gave up on lockdowns). You’re not wrong, but I encourage you to resist the temptation to simplify the story down to “classic” vs “MMT.” It’s tempting, but the world is very very complex and it ain’t getting any simpler.
fny 4y ago
MMT also predicted this. It says you're supposed to stop spending when resource constraints are reached otherwise you will see inflation. It's actually a much better description of how money actually flows The problem was that everyone remembered the GFC and went way too far with spending in an already supply constrained environment.
BrainVirus 4y ago
>Well when 80% of all US Dollars were "printed" / created in the last 2-3 years massive inflation will follow I've heard this is a completely debunked conspiracy theory: https://leadstories.com/hoax-alert/2022/04/fact-check-80-percent-of-us-dollars-in-existence-were-not-created-in-the-last-two-months-as-of-april-16-2022.html https://leadstories.com/hoax-alert/2022/04/fact-check-80-per... You see, this is why Disinformation Governance Board was a good idea.
- junofan 4y ago
  Hahaha, good to know the fact checkers are there to tell me that no, 80% of all hard currency has not literally passed through a printing press in the last “two months.” Need a good laugh after seeing [1]. And yeah, I know most of the increase is due to an accounting change. [1]: https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL
- deleted 4y ago
  [deleted]
- phpisthebest 4y ago
  your link proves why a Disinformation Governance Board is a TERRIBLE idea. Notice the comment says "printed" / created, as I was using "printed" in the Figurative meaning not literal meaning The Fed can create new money with out requesting that money be physically printed by the BEP. This is why a "run on the banks" is a fear, because no bank in the world has enough physical currency to cover all "dollars" in accounts. Only a fraction of dollars exist as a physical item

CraigJPerry 4y ago

>> What we are seeing is the predictable result of the classic monetary models Respectfully, models that are known to be wrong, as all models are - they are models after all. Austerity - where has that ever worked? Post-war Germany and... ??? I mean it's constantly tried everywhere (Greece is a good recent example of its futility). Classic monetary models clearly predict it should work, we've tried it hundreds of times in different countries over the past ~100 years, and it's worked once. Maybe we just need to try extra super duper hard the next time? My skepticism rises when i hear people confidently proclaim their economoic model predicts anything at the macro level. What we're seeing is a lazy attempt to ignore the models are not useful. If prices stay low for 5 more years than the models predict then we are told by the over-confident types that we should just wait a little longer to see the effect but they're coming. If prices go up then "AHA! Justified, i told you so". Prices can ONLY go down, up or stay the same - if you wait long enough of course they go up! There's a big wooly gap between alleged cause and effect that we're just supposed to not question when people confidently tell us their model predicted the outcome.

gghhzzgghhzz 4y ago

Prices are not rising because people have too much money and are over purchasing food and energy just to show off to their neighbours. If that were the case then there are things that would work. Increase taxes on income, unearned income, wealth and excess profits to take money out of the economy (MMT theory would support this if the issue was genuinely too much money) Introduce price controls and rationing on food and basic services including energy and housing to stop profiteering.

phpisthebest 4y ago
>>Prices are not rising because people have too much money and are over purchasing food and energy just to show off to their neighbours. I dont believe I said that in any statement, that is red herring and strawman in one. Good job... Most of the expansion of the monetary supply has been doled out in the form to debt not cash. However buying goods (Cars Home, etc) with massive amounts of debt still causes inflation Of course Supply chain issues account for some inflation as well, but not all of it. >> Introduce price controls and rationing on food and basic services In the entire history of the world, that has never worked, nor will it ever work
ymolodtsov 4y ago
> Introduce price controls and rationing on food and basic services including energy and housing to stop profiteering. Here are 100 roubles for you, comrade.

Aeolun 4y ago

I guess? But if there are 5 times more dollars to buy why do they become more expensive (for me, outside the US)? That doesn’t seem intuitively correct to me.

phpisthebest 4y ago
Because the US Dollar, today, is the World Trade Currency, what he US does with monetary policy effect the world Which is why you see China, Russia and other nation using the current opportunity to attempt to parallel economy to the one based on US Dollar

31835843 4y ago

>Well when 80% of all US Dollars were "printed" / created in the last 2-3 years massive inflation will follow Be careful. This theory tracks for regular currencies, but gets distorted (note: I didn’t not say that it doesn’t apply, only that it isn’t as strong as you say) when the currency in question is the reserve currency for the world. Classic Model didn’t predict this, because “this” is a totally bonkers scenario. Inflation is running hot (additionally) because supply chains have been torched (China and Russia) just at the time when demand came roaring back (the world minus China gave up on lockdowns). You’re not wrong, but I encourage you to resist the temptation to simplify the story down to “classic” vs “MMT.” It’s tempting, but the world is very very complex and it ain’t getting any simpler.

fny 4y ago

MMT also predicted this. It says you're supposed to stop spending when resource constraints are reached otherwise you will see inflation. It's actually a much better description of how money actually flows The problem was that everyone remembered the GFC and went way too far with spending in an already supply constrained environment.

BrainVirus 4y ago

>Well when 80% of all US Dollars were "printed" / created in the last 2-3 years massive inflation will follow I've heard this is a completely debunked conspiracy theory: https://leadstories.com/hoax-alert/2022/04/fact-check-80-percent-of-us-dollars-in-existence-were-not-created-in-the-last-two-months-as-of-april-16-2022.html https://leadstories.com/hoax-alert/2022/04/fact-check-80-per... You see, this is why Disinformation Governance Board was a good idea.

junofan 4y ago
Hahaha, good to know the fact checkers are there to tell me that no, 80% of all hard currency has not literally passed through a printing press in the last “two months.” Need a good laugh after seeing [1]. And yeah, I know most of the increase is due to an accounting change. [1]: https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL
deleted 4y ago
[deleted]
phpisthebest 4y ago
your link proves why a Disinformation Governance Board is a TERRIBLE idea. Notice the comment says "printed" / created, as I was using "printed" in the Figurative meaning not literal meaning The Fed can create new money with out requesting that money be physically printed by the BEP. This is why a "run on the banks" is a fear, because no bank in the world has enough physical currency to cover all "dollars" in accounts. Only a fraction of dollars exist as a physical item