Is all this crazy "stimulus" going to cause massive inflation spike? (wages, Pelosi)
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Seems as though that the federal reserve is going to buy a fortune of debt from the federal government.
Seems like they are using this as an excuse to buy a few extra years before it tanks. Seems like they are just going all-out for maybe another year or two of prosperity before the whole cherade falls apart.
Some are saying that this could just be a grant and that there is no need to have associated debt increase. The federal reserve would just buy federal debt and it would just an off the debt books grant.
I am not an economist obviously, but many of them seem to have gone crazy as of late but wouldn't that cause a massive inflation spike.
The goods aren't being manufactured but there is a flood of new freshly printed money wouldn't that cause epic inflation in a few years.
I am sure when it settles, seniors will love the massive COLA's they will get. State and local government workers COLA's will also cause state and local government to need to raise taxes because the taxes will mainly go to job pensions.
I am also wondering about what happens when the treasuries, CD's and mortgage rates are rock-bottom and the inflation is sky-high.
Seems as though that the federal reserve is going to buy a fortune of debt from the federal government.
Seems like they are using this as an excuse to buy a few extra years before it tanks. Seems like they are just going all-out for maybe another year or two of prosperity before the whole cherade falls apart.
Some are saying that this could just be a grant and that there is no need to have associated debt increase. The federal reserve would just buy federal debt and it would just an off the debt books grant.
I am not an economist obviously, but many of them seem to have gone crazy as of late but wouldn't that cause a massive inflation spike.
The goods aren't being manufactured but there is a flood of new freshly printed money wouldn't that cause epic inflation in a few years.
I am sure when it settles, seniors will love the massive COLA's they will get. State and local government workers COLA's will also cause state and local government to need to raise taxes because the taxes will mainly go to job pensions.
I am also wondering about what happens when the treasuries, CD's and mortgage rates are rock-bottom and the inflation is sky-high.
Not if the money they are adding is simply replacing the wages that people are losing.
There will be shocks for decades - the reason is simple. We are already still in recovery from the Great Recession and yet we borrowed (even before this) and adjusted things as if we were in another one.
Now we have this.
No one can predict the exact effect - inflation or deflation or continual lowering of "real" wages...additional inequality? Many are likely.
It's a Global Game and when the rest of the world stops propping up our money...we are done.
Another poster said the following in another thread: "The fundamentals of the economy were strong and still will be after we get past this "gap" in the economy caused by the coronavirus. The gov't is bridging the gap". This is a entirely different scenario than 2008.
As for inflation, that's all subject to demand. Aside from some essentials, things are pretty flat. I heard gas is in the $1 range in some places already...
Also, other countries around the world are also dealing with this, it's not just us.
Well it looks like a waste of time to create a budget. Tea Party types have not sad boo about all this stuff.
Why would they? After the TP mutated into an extension of the Republican party, their sole goal was to promote Republican candidates, who are pseudo-conservatives, like Trump and the ones demanding $2 trillion blank check.
Originally Posted by lovecrowds View Post
I am not an economist obviously, but many of them seem to have gone crazy as of late but wouldn't that cause a massive inflation spike.
Quote:
Originally Posted by silverkris
And it shows. You don't know what you're talking about.
"Hyperinflation starts when a country's government begins printing money to pay for its spending. As it increases the money supply, prices rise as in regular inflation...." https://www.thebalance.com/what-is-h...amples-3306097
Funny that the Fed wants to print more money, when just 3 months ago it said this was a bad practice:
"Federal Reserve economists warn that printing money to pay for deficit spending has been a disaster for other nations that have tried it." https://www.cnbc.com/2019/11/25/fed-...s-adopted.html
So if printing money doesn't cause inflation, why doesn't the Fed just print out $21 trillion and wipe out the national debt? Then they should print out another $300 trillion and give everyone in the US $1 million. Then we'll all be rich!
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