American Economics Thread

[BlackWindMnt]

A student so sleepy he slept through the arithmetic classes on elementary school.

 

[siegecrossbow]

Yes, have you not seen US data series? CPI on a 2019-2021 CAGR basis is at 2.X% while GDP growth is straight back at trend. Money printing is risk free. There has been *no* visible inflation or financial stability risk while at the same time, the US is growing far closer to pre-COVID trend than China, Japan or the EU.

If that's true then no one needs to do any work. Everyone just print money all the time and everybody can become billionaires.

 

[Deleted member 15949]

What possesses you to come out with this statement that printing money don't affect inflation and growth, and are therefore risk free?

Have you not seen the last decade of Fed policy? QE has been coupled with far faster growth than comparable DMs and no inflation

In economics, we have an equation, much like e=mc2. And this is MV=PT or some economists prefer PQ. But it is the same. This is an equation which means it must hold true. I suggest you read up on it and come back to discuss this further.

Yeah, swapping cash for USTs doesn't increase V but increase government spending.

And US is back on trend? But even take your assertion at face value. Back on trend is not, and never have been good enough on anyone's book. I'm teaching my students this now of the effect of 2008 great recession.

Yep, 2019-2021 growth has a CAGR of ~2%. It's like COVID never happened. All the mess of COVID got shoved under the rug with fiscal spending and money printing. Inflationistas have been wrong for 50 years. Give it a rest

 

[Deleted member 15949]

If that's true then no one needs to do any work. Everyone just print money all the time and everybody can become billionaires.

You still need to work. The thing is that money printing, as long as focused on the supply-side as it is in the US is functionally free money that has no downside risk and only amazing growth upside

 

[Deleted member 15949]

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Booming American jobs market even as wages and service sector employment in China decline and as China murders its internet & tourism/hospitality sectors just cuz delta or something

 

[LesAdieux]

You still need to work. The thing is that money printing, as long as focused on the supply-side as it is in the US is functionally free money that has no downside risk and only amazing growth upside

well, I doubt you are a student in economics or finance. one of the fundamental principles of economics and finance is: no arbitrage, i. e. no free lunch. print money out of the thin air has consequences, and it could be serious. we'll see the CPI for July next week, it's going to be interesting.

 

[Deleted member 15949]

well, I doubt you are a student in economics or finance. one of the fundamental principles of economics and finance is: no arbitrage, i. e. no free lunch. print money out of the thin air has consequences, and it could be serious. we'll see the CPI for July next week, it's going to be interesting.

If there was truly no arbitrage, covered IRP would be true. It's empirically not. We've had nearly a year of US money printing out of thin air, there's been no inflation but some of the fastest growth in the developed world and a burgeoning labor and stock market.

 

[Petrolicious88]

If there was truly no arbitrage, covered IRP would be true. It's empirically not. We've had nearly a year of US money printing out of thin air, there's been no inflation but some of the fastest growth in the developed world and a burgeoning labor and stock market.

There’s no inflation? Have you looked at the numbers. US economy is bouncing back from from Covid, but the problems starts in 2022 and beyond.

 

[siegecrossbow]

If there was truly no arbitrage, covered IRP would be true. It's empirically not. We've had nearly a year of US money printing out of thin air, there's been no inflation but some of the fastest growth in the developed world and a burgeoning labor and stock market.

Do you actually live in the U.S.? Inflation price in beef, which should be plentiful here in Texas, is making the Chinese pork price surge of 2019 look like a joke.

 

[Deleted member 15949]

There’s no inflation? Have you looked at the numbers. US economy is bouncing back from from Covid, but the problems starts in 2022 and beyond.

LMAO, TIPS-Treasury spreads suggest that there is no inflation on the horizon