but they werent trying to curb deflation, they printed more money to pay debts to other countries. i imagine if we are trying to curb deflation then we'd increase the monetary supply by a calculated amount to not increase inflation too much
This concept is called quantitative easing (QE) and it doesn't always work. Though notably, it did work in '08 after the Great Recession.
Deflation cause people to be afraid of spending money because aggregate demand is much lower. It's certainly possible that QE doesn't fix consumer spending habits. Money is typically not given to people directly because that may cause separate issues. For example, some of the COVID era inflation was due to people receiving money directly from the government, which signaled to businesses that excess capital could get soaked up with price increases.
We print money and inject it into the economy all the time. But wealthy people have made sure that they're the ones who get the injections. If the money we printed was, say, given to schools and used to build roads, we would have a more just society.
You need the other nations that you trade with to not freak out when you magically just generate a whole bunch of new value.
It’s a lot easier to do when you have a gun to the world’s head. So it does and will happen in convoluted ways. But why it doesn’t happen anywhere else like Japan.
Well put, the world bares the pressure of the US Federal Reserve printing money. The US 40T debt it carried by the world.
This is because the US Dollar has been the reserve currency of the world.
People are so unaware of how good the USA had it before Orange started ruined all our socioeconomic ties around the world. He's vastly accelerated USD not being the world reserve currency anymore. US Citizen have no clue how much that will hurt us, it's unrecoverable too. Once USD loses that status, it will never get back.
Covid really underlined this for me. When things just kept ticking after everything went down cause they printed a bunch of money. The entire game is rigged in favour of keeping that established power structure in place.
If it ever stops being the reserve currency that’s it for the US empire. It’s a wonder everyone let the US have its way for so long, at the same time insane that the US is just ignorantly throwing it away now.
He's vastly accelerated USD not being the world reserve currency anymore.
This is the intent. Crash our economy, buy up big swatches of wreckage for dirt cheap, and finally push your own crypto for further grift on the desperate.
Nonsense. When the fed does quantitative easing without a sufficient amount of tightening a shit ton of money is put into circulation that is created out of thin air. This absolutely happened over the last decade.
It is put on a balance sheet as debt. The debt is purchased. At no point is money being created freely. The "reserves" created for banks to stabilize aren't circulated.
Because printing new money normally goes with economic growth. If you print new money during economic contraction instead, you're making things worse in a different way.
You printed more money. More money in circulation. People know that the $1 you have today is worth less than the $1 printed tomorrow.
So bread prices increase based on that expectation. You buy bread, but it’s $1 more. How would the people buy more bread - by printing money. Cycle repeats. Hyperinflation.
Also its self reinforcing. Inflation erodes the real value of tax revenue. This worsens the government’s budget deficit. The government then often finances that deficit by printing more money. That fuels more inflation, which erodes real tax revenue further, and so on
This isn't true. Weimar's economy was on the upswing for the better part of a decade when the Nazis took over. In fact, their economic recovery was largely hampered by the US stock crisis which halted loans
Thats not really what happened. Hyperinflation was only an issue early into Weimar Germany, certainly not what lead the whole Republic to fall. Hyperinflation was resolved years before the Nazis began to rise
Plus the hyperinflation was moreso an intentional tactic used to devalue their currency to such a point that they could effectively get out of paying reperations and the significant loans they took out from WWI, and then they made it worse by printing tons of money to support striking workers in the French occupied Ruhrland. The whole thing then spiraled out of control
Weimar like conditions are the result of deliberately destructive policies and a series of terrible circumstances. It shouldnt be considered anywhere close to the average or expected result of 'printing more money' because its far more complex than that
This is factually wrong. You’re confusing the hyperinflation crisis of 1923, which was a response to foreign policy, with the deflationary crisis of the Great Depression in Germany starting 1929.
We did that in 2009-2011 with a high degree of success. I'd argue interest rates were kept too low for the time after and that is a reason we're having trouble fighting inflation now.
Yes, but it wasn't only that. The Weimar Republic was a very functional democracy (by our standards - proportional representation is used in the Netherlands for example) that was unfortunately established in a country which had very recently been a monarchy. The Kaiser strategically abdicated to avoid blame for losing WWI.
There were coups, terror attacks, assassinations, and street fights between the socialists, communists, monarchists, and Republicans. The republicans were outnumbered and unpopular because the Republic took the blame for the treaty of Versailles.
I also remember one time I think zambia or SMTH(if I remember correctly) printed am insane amount of money for some reason I don't why like have some brain cells
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u/Classy_Maggot 7h ago
Germany tried that once. There's a reason the Weimar Republic lasted for about a decade