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The Federal Reserve already overprints, that’s one reasonwhy the USD and almost every other major currency is currently struggling. Printing more money during h
by tourmalinetaco 3y ago
The Federal Reserve already overprints, that’s one reasonwhy the USD and almost every other major currency is currently struggling. Printing more money during high inflation only worsens the problems.
- eru 3y agoMaybe. But in that case, adding more consumer spending via consumer credit would be a negative, not a positive? (Only money that's actually being actively spent makes a difference. If the Fed prints oodles of money but buries it in their backyard, it would have no impact on inflation.)
- qwytw 3y ago> adding more consumer spending via consumer credit would be a negative, not a positive? In a way yeah. I mean you increase demand for goods/services without an equivalent increase in productivity you just end up with higher prices (of course the idea is that "economic" stimulus still tends to increase productivity somewhat, just by a lower % than the increase in money supply. That generally seems to be fair).
- tourmalinetaco 3y agoAbsolutely. I am not advocating for consumer credit, in fact I find the current system immoral. I am saying that injecting Monopoly money into the economy is part of what’s gotten us into this mess.