r/PeterExplainsTheJoke 9h ago

Meme needing explanation Petah?

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u/CreBanana0 8h ago

No seriously. Why tf would you get hyperinflation if you are countering deflation?

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u/BurningTrashBarge 8h ago

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.

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u/layerone 6h ago

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.

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u/marketingguy420 5h ago

But we're not really printing money. We're borrowing money. Usually from ourselves. 80% of the debt is owned by US investors.

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u/MasterGrok 3h ago

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.

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u/marketingguy420 2h ago

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.

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u/Little_Fox_9 2h ago

How does that work? How can a country be indebted to itself?

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u/marketingguy420 2h ago

Institutional investors, banks, and regular people just buy treasuries.