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The US owes its "economic strength" to the ability to print $2T/yr in perpetuity and buy stuff with that money. Once that tap ceases to function (which eventual
by ein0p 2y ago
The US owes its "economic strength" to the ability to print $2T/yr in perpetuity and buy stuff with that money. Once that tap ceases to function (which eventually it will, though not anytime soon), the US is going to be fucked beyond any recognition.
- georgeecollins 2y agoThat's irrational and alarmist. Any time I hear someone talk about "printing money" I figure I am hearing from someone who doesn't have a great grasp of finance. For those that are interested, the supply of US currency or purchasing power of the government is not controlled by printing. A steelman of this argument is the USA has too much debt and can't keep issuing this much. Maybe true. But the world holds that debt and it's denominated in USD. Also, just the simple wealth of US households grows a lot faster than the debt so its still pretty clear that if the US wanted to pay all its debts it easily could. (https://fred.stlouisfed.org/series/BOGZ1FL192090005Q https://fred.stlouisfed.org/series/BOGZ1FL192090005Q) We could be heading for inflation like in the late 70's early 80's. Not good but you don't have to doomsday prep.
- jameslk 2y agoWe're heading into 1940s inflation, not 1970s. 1970s inflation was lending driven. 1940s inflation was fiscally driven, like it is today.
- wslh 2y agoEven if you are correct, it might be worth mentioning that the US is the top military power, which adds strength to the equation.
- ein0p 2y agoSome folks from Afghanistan and Yemen must have died laughing after reading that sentence.