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Inflating the money supply by billions of dollars to fund several expensive conflicts around the world seems like it would have a larger effect on inflation rig
by cupcakecommons 3y ago
Inflating the money supply by billions of dollars to fund several expensive conflicts around the world seems like it would have a larger effect on inflation right? We are in the process of regularly shooting down 300$ drones with weapons systems that cost hundreds of thousands of dollars (sometimes millions) per shot. Should we really have deep concern about wages that companies freely decide to pay their employees? Isn't this completely insane regardless of what any kind of "the research" happens to say?
- Shrezzing 3y agoThe US Money Supply (M2 & M1) has been falling pretty consistently since Russia's full-scale invasion of Ukraine in 2022. M0 is also down overall since the invasion, though it's gone through ups and downs. I'm not certain the statement "Inflating the money supply by billions of dollars to fund several expensive conflicts" reflects reality.
- cupcakecommons 3y agoWhere does the money come from that funds these proxy wars? Taxes? Taxes barely cover half of what is spent year to year. Doesn't the rest comes from inflating the currency? Where else could it possibly come from? As long as we are running a massive deficit I can't understand how the money supply can actually decrease unless money is actively being taken out of circulation and deleted (regardless of what the federal reserve charts seem to say). This seems like an impossible task in a basic sense. People obviously notice when money is taken away or destroyed. Please make it make sense - I honestly don't understand.