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We've just started one round of "stimulus" checks and this is likely just the beginning. Can someone explain to me how creating more digits and injecting them into people's bank accounts is supposed to increase prosperity? These digits have no value whatsoever, except when they are spent into circulation, which steals purchasing power from all the other digits. This is theft, we're all going to steal from each other, and that's supposed to make us all richer? If this worked, shouldn't Zimbabwe be on top of the world? All this is, is a massive tax/punishment on prudent cash savers to bail out the financially reckless.
You need to go read a good solid book on macroeconomics, and quit asking these questions as if it's the same model as some small business making rubber chair donuts or your own financial model.
Seriously. It's like saying Ford can't make real cars because all you have are plastic toys.
You need to go read a good solid book on macroeconomics, and quit asking these questions as if it's the same model as some small business making rubber chair donuts or your own financial model.
Seriously. It's like saying Ford can't make real cars because all you have are plastic toys.
The questions are valid. Backing for the stimulus borrowing is on the backs of producers, now and in the future. We are taking full advantage of the the USD as the world’s dominant currency, pray the confidence game continues.
The questions are valid. Backing for the stimulus borrowing is on the backs of producers, now and in the future. We are taking full advantage of the the USD as the world’s dominant currency, pray the confidence game continues.
The only way I can see this game continuing for much longer is through ultra delusional levels of hoping, pretending, and ignoring.
Only in a fairly... vapid and naive way. But answer away.
Far too many people (here and elsewhere) who really should know better view the US financial system as something like their own checking account with a few zeroes added. There is absolutely no meaningful or useful discussion to be had at that point, any more than... trying to discuss what NASA does with a flat-earther or someone who doesn't believe rockets really work.
At a certain level, "go read a good book on the topic and come on back" is the only useful answer.
We've just started one round of "stimulus" checks and this is likely just the beginning. Can someone explain to me how creating more digits and injecting them into people's bank accounts is supposed to increase prosperity? These digits have no value whatsoever, except when they are spent into circulation, which steals purchasing power from all the other digits. This is theft, we're all going to steal from each other, and that's supposed to make us all richer? If this worked, shouldn't Zimbabwe be on top of the world? All this is, is a massive tax/punishment on prudent cash savers to bail out the financially reckless.
Central stimulus in these times IMO is a good idea. But it can't be perfect in time, location, individual and business need and resultant positive effect.
Ideally this stimulus would substitute for a paycheck for one who is of lean means. So not only would that person benefit, but so would the seller of the goods or services they buy as a result. If there is an excess of these goods and services, then the benefit goes farther up the economic chain. If there is a lack of these goods and services, then that tends to be inflationary. i.e. less than ideal.
Stimulus for those of sufficient means is not so useful. They may save more. Not the worst of events, but relatively neutral as far as general inflation goes.
Zimbabwe is a poor example. Zimbabwe is a combination of central governmental malfeasance and lack of productivity backing their currency. Closer to Venezuela.
Here in the US this is sensible counter-recessionary policy. And when the virus runs its course our productivity will again rise. As a long term doc I'm betting on a solution. As a long term investor, the same.
Only in a fairly... vapid and naive way. But answer away.
Far too many people (here and elsewhere) who really should know better view the US financial system as something like their own checking account with a few zeroes added. There is absolutely no meaningful or useful discussion to be had at that point, any more than... trying to discuss what NASA does with a flat-earther or someone who doesn't believe rockets really work.
At a certain level, "go read a good book on the topic and come on back" is the only useful answer.
The man who wrote the “good book on the topic”, John Maynard Keynes, would be appalled at what is done in his name these days. Keynes believed that government should play an active role in stabilizing economic shifts, even deficit spending as needed in bad times. But the funds were supposed to be derived from surplus accumulated during the good times.
The man who wrote the “good book on the topic”, John Maynard Keynes, would be appalled at what is done in his name these days. Keynes believed that government should play an active role in stabilizing economic shifts, even deficit spending as needed in bad times. But the funds were supposed to be derived from surplus accumulated during the good times.
Keynesianism is wrong, but we no longer even practice Keynesianism, but something far more degenerate- MMT (Modern Monetary Theory).
Or as I like to call it, Maduro-Mugabe Theory, or Magic Money Tree.
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