3 ms·

+1 I totally agree with you: the US government has been printing money (if you will allow an imprecise analogy) like crazy to prop up property values and stock

+1 I totally agree with you: the US government has been printing money (if you will allow an imprecise analogy) like crazy to prop up property values and stock equities. I don't know anyone who thinks that the future will be anywhere as good as 1990-2015 (even allowing for 2001 and 2007-2008 downturns). Both political parties service wall street and our defense industry, not regular people and don't really care about inflation and other problems that slam the poor and lower middle class. Printing money is good for the republican's and democrat's constituents (the elites).

asdajksah2123 4y ago
And yet the dollar is getting stronger relative to other currencies. This whole "government printing money" framing is very wrong. The government was printing money and it led to tremendous growth. In other words, the economy was able to absorb the money which meant the money printing was absolutely appropriate. However, we had several external supply side shocks due to the pandemic, and Russia's war on Ukraine, which drove the cost of goods higher. Since the US government cannot really stop Russia from killing civilians in Ukraine, or force China to get rid of its zero COVID policy, or single handedly fix the logistical breakdowns in all the shipping lines, etc, it has to rely on the only tool it has, which is cooling the economy. In essence, it's solving a supply chain shock with a demand side response, because that's all it controls. In fact, the fact that the Fed had kept interest rates low and "printed money" meant that it has a lot of leeway to actually tackle this situation right now without causing too much pain. After several significant increases, the target rate is still 1.5-1.75, which takes us back to what the Fed had reduced it to during the peak of the 2008 crisis. Which means that thanks to its policies, the Fed still has a lot of room to help control inflation without causing too much pain, something which wouldn't have been possible if it had prematurely raised rates earlier.
- burntoutfire 4y ago
  Dollar is getting stronger because other countries either had similar irresponsible policies or are a shitstorm for different reasons. All things considered, the US, with its world-dominating and extremely robust economy, is the safest bet for weathering the storm, and so the whole world buys dollars to invest in the US.
- kmlx 4y ago
  > However, we had several external supply side shocks due to the pandemic, and Russia's war on Ukraine, which drove the cost of goods higher. just a sec. huge inflation started before Russia’s war. and it was due to the government printing huge amounts. the politicians miscalculated and we’re paying the price. Russia’s war just confirmed things will be bad, it was not the precursor, no matter what the politicians are saying. https://news.sky.com/story/amp/us-inflation-hits-fresh-four-decade-high-even-before-ukraine-war-added-to-price-pressures-12562618 https://news.sky.com/story/amp/us-inflation-hits-fresh-four-... > And yet the dollar is getting stronger relative to other currencies. this is because the US dollar is considered a safe haven asset. especially in a global recession.

asdajksah2123 4y ago

And yet the dollar is getting stronger relative to other currencies. This whole "government printing money" framing is very wrong. The government was printing money and it led to tremendous growth. In other words, the economy was able to absorb the money which meant the money printing was absolutely appropriate. However, we had several external supply side shocks due to the pandemic, and Russia's war on Ukraine, which drove the cost of goods higher. Since the US government cannot really stop Russia from killing civilians in Ukraine, or force China to get rid of its zero COVID policy, or single handedly fix the logistical breakdowns in all the shipping lines, etc, it has to rely on the only tool it has, which is cooling the economy. In essence, it's solving a supply chain shock with a demand side response, because that's all it controls. In fact, the fact that the Fed had kept interest rates low and "printed money" meant that it has a lot of leeway to actually tackle this situation right now without causing too much pain. After several significant increases, the target rate is still 1.5-1.75, which takes us back to what the Fed had reduced it to during the peak of the 2008 crisis. Which means that thanks to its policies, the Fed still has a lot of room to help control inflation without causing too much pain, something which wouldn't have been possible if it had prematurely raised rates earlier.

burntoutfire 4y ago
Dollar is getting stronger because other countries either had similar irresponsible policies or are a shitstorm for different reasons. All things considered, the US, with its world-dominating and extremely robust economy, is the safest bet for weathering the storm, and so the whole world buys dollars to invest in the US.
kmlx 4y ago
> However, we had several external supply side shocks due to the pandemic, and Russia's war on Ukraine, which drove the cost of goods higher. just a sec. huge inflation started before Russia’s war. and it was due to the government printing huge amounts. the politicians miscalculated and we’re paying the price. Russia’s war just confirmed things will be bad, it was not the precursor, no matter what the politicians are saying. https://news.sky.com/story/amp/us-inflation-hits-fresh-four-decade-high-even-before-ukraine-war-added-to-price-pressures-12562618 https://news.sky.com/story/amp/us-inflation-hits-fresh-four-... > And yet the dollar is getting stronger relative to other currencies. this is because the US dollar is considered a safe haven asset. especially in a global recession.