Printing that much money has a long term cost.
It won't be apparent this year or next, but it will.
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American Economics Thread
- Thread starter Bernard
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Printing that much money has a long term cost.
It won't be apparent this year or next, but it will.
D
Deleted member 15949
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Long-term cost = tight labor markets and rapid economic growth
Low quality gig economy jobs and economic growth far lower than the printing of money. Most of the money went into stock buybacks. If they just threw the money out of helicopters as $100 bills it might have been more effective.
D
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Wrong, there's some of the fastest wage growth ever recorded.
So what? Money printing was effective at growth and was non-inflationary and it was *free*
For 2021, the US is expected to run a huge budget deficit of 15% of GDP.
Before the pandemic it was less than 5%
So you would expect fast economic growth and low unemployment.
If the budget deficits and trade deficits continue, there will come a point where confidence in the USD crashes.
No it isn’t. How often do people need to explain to you that there are consequences for wanton money printing, have you been to the super markets and saw the shortages as of now. I have to spent hundreds more to feed my family compared to before, what are you thinking. The USA economy isn’t growing, where are all the high tech job growths, all I see are service sector jobs. Please provide real evidence, not some none sense you can find on CNN
@SleepyStudent
We're looking at a following for the US every year
Budget deficit = $3 Trillion (15% of GDP)
Trade deficit = $1 Trillion (5% of GDP)
Note that US GDP is $21 Trillion
US government debt = $29 Trillion
The US International Investment Position = negative $15 Trillion
If the US was a net creditor, then printing money and racking up government debt could be manageable.
But the US already owes 75% of its GDP to overseas creditors.
At some point the party will stop for the budget and trade deficits
We're looking at a following for the US every year
Budget deficit = $3 Trillion (15% of GDP)
Trade deficit = $1 Trillion (5% of GDP)
Note that US GDP is $21 Trillion
US government debt = $29 Trillion
The US International Investment Position = negative $15 Trillion
If the US was a net creditor, then printing money and racking up government debt could be manageable.
But the US already owes 75% of its GDP to overseas creditors.
At some point the party will stop for the budget and trade deficits
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D
Deleted member 15949
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LOL, there are no shortages. Food CPI is in its historic range
SF/SEA/MIA are booming. The high-tech and service sector growth happens at the same time. I just showed you the JOLTS data on employment.
D
Deleted member 15949
Guest
A few problem with this. Most US debt is owned to the US itself or to the Fed and GDP is a flow measure, there is still substantial stock of assets to be sold (not to mention the US can create more out of thin air, it's called a UST)