Quote:
Originally Posted by McLovin
What I don’t get, and perhaps someone can explain it to me, is this:
1) How can the govt, over a couple of years, print and give away literally Trillions and Trillion of dollars, and expect that the previously existing dollars would retain their value? ....
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If those dollars "go under the mattress" then they are not inflationary.
In 2008-9 I was counter the
OMG QE-infinity!! freak-out because I saw that banks had already created that money (on their books). The QE created money covered that which had just evaporated(housing valuations) . So really, it replaced $'s to keep banks from failing.
And here we are now. On the heels of a global shut-down. Helicopter money to some extent and now a pull-back. - How many thousand IRS agents to claw money back? I digress... The US is not alone in Helicopter money. Other countries have been "printing" money as well. The US is not close to leading on that front (so I hear).
The big question is,
where do those Trillions go?
We are sending tens of Billions to Ukraine. Does it circulate there? Does it get exploded in Russia? Does it come back to the US as corrupto-currency? Where does the money go? How much of it circulates? Because if it is not in circulation it will not drive inflation.