3 ms·

Debt monetization is not happening. There's been significant expansion of the money supply, which got the US through COVID at a one-off cost of about 10% inflat

by pjc50 7mo ago

Debt monetization is not happening. There's been significant expansion of the money supply, which got the US through COVID at a one-off cost of about 10% inflation in one year, which I think was a reasonable cost of covering the crisis (especially compared to the GDP response in less generous countries!) What's happening is a much simpler, more drastic concern: does the US respect its international commitments?

input_sh 7mo ago
The US stopped respecting its international commitments in Trump's first term when it single-handedly withdrew from the JCPOA (singed by way more countries than just the US) without a single valid reason to do so. Since then, it flip-flopped on the Paris Agreement, single-handedly put tariffs on goods imported from literally every single country in the world, withdrew from WHO and so on and so on. Not only does the US not respect the commitments it already agreed to, it hasn't done so for the past 10 or years.
- mbac32768 7mo ago
  > Not only does the US not respect the commitments it already agreed to, it hasn't done so for the past 10 or years. These commitments were commitments by the administration in the White House at that time. They were not accords or treaties ratified by Congress. Agree with them or don't, they should have been understood as what they were: limited in legitimacy and free to be canceled by the next administration with no discussion. This isn't a matter of arcane political skullduggery, it's spelled out in the US Constitution's definition of treaty, Article II, Section 2, Clause 2. The people were not formally heard.
  - 1718627440 7mo ago
    The administration is administering the USA. It's the USA that commits. To other countries it does not matter what your internal rules are to what your country does.
throw0101d 7mo ago
> There's been significant expansion of the money supply, which got the US through COVID at a one-off cost of about 10% inflation in one year […] Not just the US: a lot of countries implemented stimulus packages to get their economy going post-COVID. The inflation of these programs was unexpected/predicted: * https://www.piie.com/blogs/realtime-economic-issues-watch/inflation-fears-and-biden-stimulus-look-korean-war-not-vietnam https://www.piie.com/blogs/realtime-economic-issues-watch/in... I think it's also worth noting that a lot of people have 'forgotten' other factors happening besides stimulus and monetary (central bank) policy—especially when it comes to energy and food prices: * https://en.wikipedia.org/wiki/2022_Russian_invasion_of_Ukraine https://en.wikipedia.org/wiki/2022_Russian_invasion_of_Ukrai...

by pjc50 7mo ago

input_sh 7mo ago

The US stopped respecting its international commitments in Trump's first term when it single-handedly withdrew from the JCPOA (singed by way more countries than just the US) without a single valid reason to do so. Since then, it flip-flopped on the Paris Agreement, single-handedly put tariffs on goods imported from literally every single country in the world, withdrew from WHO and so on and so on. Not only does the US not respect the commitments it already agreed to, it hasn't done so for the past 10 or years.

mbac32768 7mo ago
> Not only does the US not respect the commitments it already agreed to, it hasn't done so for the past 10 or years. These commitments were commitments by the administration in the White House at that time. They were not accords or treaties ratified by Congress. Agree with them or don't, they should have been understood as what they were: limited in legitimacy and free to be canceled by the next administration with no discussion. This isn't a matter of arcane political skullduggery, it's spelled out in the US Constitution's definition of treaty, Article II, Section 2, Clause 2. The people were not formally heard.
- 1718627440 7mo ago
  The administration is administering the USA. It's the USA that commits. To other countries it does not matter what your internal rules are to what your country does.

throw0101d 7mo ago

> There's been significant expansion of the money supply, which got the US through COVID at a one-off cost of about 10% inflation in one year […] Not just the US: a lot of countries implemented stimulus packages to get their economy going post-COVID. The inflation of these programs was unexpected/predicted: * https://www.piie.com/blogs/realtime-economic-issues-watch/inflation-fears-and-biden-stimulus-look-korean-war-not-vietnam https://www.piie.com/blogs/realtime-economic-issues-watch/in... I think it's also worth noting that a lot of people have 'forgotten' other factors happening besides stimulus and monetary (central bank) policy—especially when it comes to energy and food prices: * https://en.wikipedia.org/wiki/2022_Russian_invasion_of_Ukraine https://en.wikipedia.org/wiki/2022_Russian_invasion_of_Ukrai...