6 ms·

Are you advocating for printing more USD? edit: not sure why I'm being downvoted for asking a relevant question

whatever1 4y ago
People outside the US love it, so no issue with devaluing the USD if we print an extra couple of trillions. The main issue is that the global supply chain cannot literally serve richer American consumers, so the cost of supply increases and everyone (in the US and out) faces inflation pressure.
- miguelazo 4y ago
  People outside the US loved it. Recent moves by Japan, Switzerland and some others in the (quickly-losing-liquidity) Treasury Market suggest that era is coming to a close.
  - ghostwriter 4y ago
    > People outside the US loved it. Correction: foreign central banks guided by IMF subsidiaries loved it dearly, people - not that much, perhaps the opposite [1] [1] https://youtu.be/p5Ac7ap_MAY?t=1769 https://youtu.be/p5Ac7ap_MAY?t=1769
  - kobalsky 4y ago
    no one with savings in USD is glad that it inflated, but the reality is that other easily accesible currencies bit the dust harder.
- ars 4y ago
  If we devalue the USD all that will happen is the price of oil, as denominated in USD, will go up. You don't actually accomplish anything.
rsync 4y ago
I downvoted you because you complained about your downvotes. Don't watch the score and, especially, don't complain about it.
- gtirloni 4y ago
  I did not complain. Maybe you should revisit your downvoting principles. I inquired why I was being downvoted for asking a question. I was genuinely curious about how that was bad.
  - ketzo 4y ago
    Just bad form to mention your own score, period.
    - benj111 4y ago
      True, but if you ask a genuine question and get downvotes, what are you supposed to infer from that? Yes it may be bad form to mention your own score, but it's equally bad form to downvote for asking a question, or read into a question something that wasn't said which may require a down vote. Why don't you take the time to answer the parents question rather than downvote them for querying why their question got downvotes? If there's anywhere that appreciates the gaining of knowledge on the internet, surely hn must be one of the top candidates. So why downvote questions? And yes it's happened to me multiple times, and it's bloody annoying. Doubly so because you know if you try to clarify you'll get someone downvoting you because why? I don't know. Because that would be 'bad form'? BS. /Rant
      - dislikedtom2 4y ago
        Often I think it means that you asked a painful question. Don't think that downvotes are always bad, they merely just tell what is popular, just like in reddit.
        benj111 4y ago
MerelyMortal 4y ago
Maybe the edit could have instead provided clarification to why it's relevant.
danielschonfeld 4y ago
Generally speaking yes. If from your question I deduce that you’re worried about how much we already “printed” then do some googling over why the common citing of growth of M2 chart is interpreted wrong. Spoiler - we didn’t print nearly as much as you think we did. And we generally haven’t even scratched the surface of how much more a normal growth of the currency since 2008 was needed. The question that needs to be asked is more political and societal than monetary. Does the US want to lead the world by resuming at marketing a more true and secular beacon of hope and freedom or does it want to become isolationist and toe the line of each dog to its own. If we choose the former the question than arises if that’s even still possible and if we ever were true to it or were we just lucky enough to enjoy the arbitrage of developing countries not having developed yet. I personally don’t have all the answers but it seems to me that combined with our questionable moral standing in the last 22 years and our secular stagnation the latter is the path we’re choosing to follow.
- unboxingelf 4y ago
  Spoiler - we didn’t print nearly as much as you think we did. And we generally haven’t even scratched the surface of how much more a normal growth of the currency since 2008 was needed. What are you talking about? Aside from the indoctrinated belief that money printing is good and normal, in the past 2 years alone the US has printed nearly 80% of USD in existence. Our debt to GDP is over 130%. If by “normal” you mean debasing and destroying the government money just like every empire before, sure.
  - danielschonfeld 4y ago
    > in the past 2 years alone the US has printed nearly 80% of USD in existence Often cited and incorrect metric. The fed changed how the count M2 I believe because they started paying interest on reserves during their response to the COVID crisis. Either way the chart often cited showing an increase in M2 is not telling the whole story, namely that not nearly enough USD has been “printed” to satisfy world hunger and needs. (Think, if dollar was a plenty then why is DXY at the close to the second highest in history. Demand outpaces supply.) You can Google it. Have fun! While you’re at it also Google Triffin Paradox. Read about trade deficits as they relate to a country who’s currency is a global reserve currency.

People outside the US love it, so no issue with devaluing the USD if we print an extra couple of trillions. The main issue is that the global supply chain cannot literally serve richer American consumers, so the cost of supply increases and everyone (in the US and out) faces inflation pressure.

miguelazo 4y ago
People outside the US loved it. Recent moves by Japan, Switzerland and some others in the (quickly-losing-liquidity) Treasury Market suggest that era is coming to a close.
- ghostwriter 4y ago
  > People outside the US loved it. Correction: foreign central banks guided by IMF subsidiaries loved it dearly, people - not that much, perhaps the opposite [1] [1] https://youtu.be/p5Ac7ap_MAY?t=1769 https://youtu.be/p5Ac7ap_MAY?t=1769
- kobalsky 4y ago
  no one with savings in USD is glad that it inflated, but the reality is that other easily accesible currencies bit the dust harder.
ars 4y ago
If we devalue the USD all that will happen is the price of oil, as denominated in USD, will go up. You don't actually accomplish anything.

rsync 4y ago

I downvoted you because you complained about your downvotes. Don't watch the score and, especially, don't complain about it.

gtirloni 4y ago
I did not complain. Maybe you should revisit your downvoting principles. I inquired why I was being downvoted for asking a question. I was genuinely curious about how that was bad.
- ketzo 4y ago
  Just bad form to mention your own score, period.
  - benj111 4y ago
    True, but if you ask a genuine question and get downvotes, what are you supposed to infer from that? Yes it may be bad form to mention your own score, but it's equally bad form to downvote for asking a question, or read into a question something that wasn't said which may require a down vote. Why don't you take the time to answer the parents question rather than downvote them for querying why their question got downvotes? If there's anywhere that appreciates the gaining of knowledge on the internet, surely hn must be one of the top candidates. So why downvote questions? And yes it's happened to me multiple times, and it's bloody annoying. Doubly so because you know if you try to clarify you'll get someone downvoting you because why? I don't know. Because that would be 'bad form'? BS. /Rant
    - dislikedtom2 4y ago
      Often I think it means that you asked a painful question. Don't think that downvotes are always bad, they merely just tell what is popular, just like in reddit.
      - benj111 4y ago

MerelyMortal 4y ago

Maybe the edit could have instead provided clarification to why it's relevant.

danielschonfeld 4y ago

Generally speaking yes. If from your question I deduce that you’re worried about how much we already “printed” then do some googling over why the common citing of growth of M2 chart is interpreted wrong. Spoiler - we didn’t print nearly as much as you think we did. And we generally haven’t even scratched the surface of how much more a normal growth of the currency since 2008 was needed. The question that needs to be asked is more political and societal than monetary. Does the US want to lead the world by resuming at marketing a more true and secular beacon of hope and freedom or does it want to become isolationist and toe the line of each dog to its own. If we choose the former the question than arises if that’s even still possible and if we ever were true to it or were we just lucky enough to enjoy the arbitrage of developing countries not having developed yet. I personally don’t have all the answers but it seems to me that combined with our questionable moral standing in the last 22 years and our secular stagnation the latter is the path we’re choosing to follow.

unboxingelf 4y ago
Spoiler - we didn’t print nearly as much as you think we did. And we generally haven’t even scratched the surface of how much more a normal growth of the currency since 2008 was needed. What are you talking about? Aside from the indoctrinated belief that money printing is good and normal, in the past 2 years alone the US has printed nearly 80% of USD in existence. Our debt to GDP is over 130%. If by “normal” you mean debasing and destroying the government money just like every empire before, sure.
- danielschonfeld 4y ago
  > in the past 2 years alone the US has printed nearly 80% of USD in existence Often cited and incorrect metric. The fed changed how the count M2 I believe because they started paying interest on reserves during their response to the COVID crisis. Either way the chart often cited showing an increase in M2 is not telling the whole story, namely that not nearly enough USD has been “printed” to satisfy world hunger and needs. (Think, if dollar was a plenty then why is DXY at the close to the second highest in history. Demand outpaces supply.) You can Google it. Have fun! While you’re at it also Google Triffin Paradox. Read about trade deficits as they relate to a country who’s currency is a global reserve currency.