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>It's politically convenient to blame foreigners while the general population has had their personal wealth diminished through multiple runs of the money printi
by dangravell 14y ago
>It's politically convenient to blame foreigners while the general population has had their personal wealth diminished through multiple runs of the money printing press.
Except that didn't actually happen [inflation], did it? And that inflation that did happen was mainly caused by energy prices and food inflation, not via the money supply.
- gregsq 14y agoWell expanding the money supply devalues the currency, and lowers the value of savings when compared to other currencies, or gold or whatever. That is an inflationary factor as you say. The banking system nonetheless had their trading position improved by receipt of new money, and from a money supply point of view, it's an asset swap. The argument was that it's better to take from the savings pool to avoid a plummeting currency.