4 ms·
Good, simple run-down of how printing free cash like a banana republic through ZIRP by relying on the reserve currency status of the dollar hollowed out the US
by dumbledoren 2y ago
Good, simple run-down of how printing free cash like a banana republic through ZIRP by relying on the reserve currency status of the dollar hollowed out the US economy. It led to a scammy economy in which finance sharks printed money and generated financial assets out of thin air to bloate the value of everything. Stocks got overpriced to ~60x their value, real estate became an atrocious balloon. All the while without producing anything.
It even infected the tech sector and turned it from something that actually produces value to a casino that bets on 'potential' balloons to profit from bloated, overvalued stocks and valuations. Why produce anything when you can just make gobs of cash by shoveling the infinite amount of free cash that is entering the economy anyway...
All of this was at the cost of the physical goods and services. Now that the dollar has tangible competition, the entire scam is coming crashing down.