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Excess liquidity gets eventually absorbed in the form of broad inflation. I.e. the money loses the excess value.
by Geee 4y ago
Excess liquidity gets eventually absorbed in the form of broad inflation. I.e. the money loses the excess value.
- Supermancho 4y agoEventually, meaning decades, as long as a near equilibrium is eventually reached, wages will rise and wealth ceases to be self-reinforcing at a grand level (back to a few percent). There hasn't been equilibrium for at least a decade. The long tail (the vast majority of people) will continue to suffer for decades and wealth will continue to be disgustingly easy to grow (with a few hundred thousand) in relation to the price increases most people encounter day-to-day. Ofc, maybe I'm just biased.