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
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u/CreBanana0 7h ago
No seriously. Why tf would you get hyperinflation if you are countering deflation?