20% of ALL US dollars were printed/created this year (1 Viewer)

[urbanhack]

This seems hard to believe.

https://www.cityam.com/almost-a-fifth-of-all-us-dollars-were-created-this-year/

 

[The General]

I saw this in a Twitter reply yesterday and forgot to check into it. 

If true I don’t see any economist way of explaining how we aren’t totally screwed. But at same time we would have been screwed if we didn’t do it.

 

[Desert_Power]

So what?  

 

[urbanhack]

So what?  

 

[The Narrator]

This seems hard to believe.

https://www.cityam.com/almost-a-fifth-of-all-us-dollars-were-created-this-year/

People got 1200 bucks. The stock market got trillions. 

 

[Zigg]

I saw this in a Twitter reply yesterday and forgot to check into it. 

If true I don’t see any economist way of explaining how we aren’t totally screwed. But at same time we would have been screwed if we didn’t do it.

The majority of it settles into the bank accounts of the absurdly wealthy. This is why I don’t understand the fear of socialism. It all goes to the same place anyway, might as well make some people happy on the way. 

 

[The General]

So what?  

How can anyone take our money seriously when we create 20% more of it in a short period. 

Probably some Econ 101 stuff that I don’t understand but this seems pretty bad. 

 

[Leroy Hoard]

This is all quite true. I keep a daily log of exactly how much money I have in my wallet.  One year ago today I had 100 dollars. Today I have 120 dollars in that same wallet.  You just can't make this stuff up.

 

[JAA]

How can anyone take our money seriously when we create 20% more of it in a short period. 

Probably some Econ 101 stuff that I don’t understand but this seems pretty bad. 

What ive read is that there is no other choice.  Too much is wrapped up in the dollar.  Also, we have the biggest and baldest army on the planet so no one can do anything about it.

Crazy answer I know, but when you think down the line there is no recourse for anyone else.

 

[MTskibum]

How can anyone take our money seriously when we create 20% more of it in a short period. 

Probably some Econ 101 stuff that I don’t understand but this seems pretty bad. 

Every bank is doing the same thing to their currency, we pumped less into our economy compared to the European Central Bank for example. There are no alternatives to the US dollar, we are still the most stable.

https://www.cnn.com/2020/12/10/economy/ecb-december-meeting-stimulus/index.html

 

[Stoneworker]

Every bank is doing the same thing to their currency, we pumped less into our economy compared to the European Central Bank for example. There are no alternatives to the US dollar, we are still the most stable.

https://www.cnn.com/2020/12/10/economy/ecb-december-meeting-stimulus/index.html

From Ray Dalio...

The most often asked question regarding the dollar is, “How could the United States lose its reserve currency status when there are no good alternative currencies to replace it?”

History has shown that whenever currencies are not desired they are sold off and devalued with the capital finding other investments (e.g., gold, silver, stocks, property, etc.) to go into, so there is no need to have an attractive alternative foreign currency market to go into for the devaluation of a currency to occur. In other words the US could see its reserve currency status reduced without there being an alternative reserve currency to go into.

Without the US disrupting China’s currency and capital markets they will likely develop quickly and increasingly compete with the US currency and credit markets. You won’t see this all at once, but you will see it evolve that way at a shockingly fast pace over the next 5-10 years.

https://www.principles.com/the-changing-world-order/#chapter7TheCapitalWar

 

[JAA]

From Ray Dalio...

The most often asked question regarding the dollar is, “How could the United States lose its reserve currency status when there are no good alternative currencies to replace it?”

History has shown that whenever currencies are not desired they are sold off and devalued with the capital finding other investments (e.g., gold, silver, stocks, property, etc.) to go into, so there is no need to have an attractive alternative foreign currency market to go into for the devaluation of a currency to occur. In other words the US could see its reserve currency status reduced without there being an alternative reserve currency to go into.

Without the US disrupting China’s currency and capital markets they will likely develop quickly and increasingly compete with the US currency and credit markets. You won’t see this all at once, but you will see it evolve that way at a shockingly fast pace over the next 5-10 years.

https://www.principles.com/the-changing-world-order/#chapter7TheCapitalWar

I’ve read his book. I like a lot of his principles. However, some of his ideologies are too academic for me. 

 

[The Commish]

Where are all the QE guys?!?!?!?!?!?  This is an outrage!!!!!!!!   

 

[parasaurolophus]

What ive read is that there is no other choice.  Too much is wrapped up in the dollar.  Also, we have the biggest and baldest army on the planet so no one can do anything about it.

Crazy answer I know, but when you think down the line there is no recourse for anyone else.

I thought this was a pretty hairy situation, but you have calmed my fears. 

We probably could shave a few dollars from the military budget though I think. 

 

[The Commish]

What ive read is that there is no other choice.  Too much is wrapped up in the dollar.  Also, we have the biggest and baldest army on the planet so no one can do anything about it.

Crazy answer I know, but when you think down the line there is no recourse for anyone else.

This doesn't really matter if/when they can't use any of the equipment/technology they rely on in lieu of military theory/approach after it's been hacked and rendered useless.

 

[JAA]

What ive read is that there is no other choice.  Too much is wrapped up in the dollar.  Also, we have the biggest and baldest army on the planet so no one can do anything about it.

Crazy answer I know, but when you think down the line there is no recourse for anyone else.

I thought this was a pretty hairy situation, but you have calmed my fears. 

We probably could shave a few dollars from the military budget though I think. 

There are prolly lots of places we could shave a few dollars.  Its a shame that the power at be keep directing conversation away from spending.  Wish we as a country could have some honest conversations about balancing the budget.

 

[JAA]

What ive read is that there is no other choice.  Too much is wrapped up in the dollar.  Also, we have the biggest and baldest army on the planet so no one can do anything about it.

Crazy answer I know, but when you think down the line there is no recourse for anyone else.

This doesn't really matter if/when they can't use any of the equipment/technology they rely on in lieu of military theory/approach after it's been hacked and rendered useless.

No argument here.  However, please dont watch too many movies ... especially Hackers or Sneakers

 

[parasaurolophus]

There are prolly lots of places we could shave a few dollars.  Its a shame that the power at be keep directing conversation away from spending.  Wish we as a country could have some honest conversations about balancing the budget.

We would have to focus on areas that we would rogain the most bang for the buck. I mean really comb through it all. 

 

[JAA]

There are prolly lots of places we could shave a few dollars.  Its a shame that the power at be keep directing conversation away from spending.  Wish we as a country could have some honest conversations about balancing the budget.

We would have to focus on areas that we would rogain the most bang for the buck. I mean really comb through it all. 

Sorry - read your response as rogaine.  Gave me a good chuckle, thank you 

 

[parasaurolophus]

Sorry - read your response as rogaine.  Gave me a good chuckle, thank you 

If you read back through, you might chuckle again. 

 

[JAA]

Sorry - read your response as rogaine.  Gave me a good chuckle, thank you 

If you read back through, you might chuckle again. 

Well played

 

[Stoneworker]

There are prolly lots of places we could shave a few dollars.  Its a shame that the power at be keep directing conversation away from spending.  Wish we as a country could have some honest conversations about balancing the budget.

I believe that ship has sailed. The failures of Simpson-Bowles and the Obama-Boehner Grand Bargain were our last opportunity for a budget-oriented resolution. The national debt is now far too high, combined with a realization of the illusory wonders politicians have discovered regarding printing money. Controlling spending won't enter the conversation again until after the inevitable massive currency devaluation.

 

[JAA]

There are prolly lots of places we could shave a few dollars.  Its a shame that the power at be keep directing conversation away from spending.  Wish we as a country could have some honest conversations about balancing the budget.

I believe that ship has sailed. The failures of Simpson-Bowles and the Obama-Boehner Grand Bargain were our last opportunity for a budget-oriented resolution. The national debt is now far too high, combined with a realization of the illusory wonders politicians have discovered regarding printing money. Controlling spending won't enter the conversation again until after the inevitable massive currency devaluation.

I hear you, but I believe we can do better.

Ive opined about this here before, but I believe GenX is going to clean up all this mess.  The Boomers were basically handed the greatest amount of wealth transfer in the history of mankind and they did nothing but line their pockets and kick the can down the road.  My anecdotal experience is that Millennials will be no help, but GenZ's will be more practical.

I believe GenX will take a very structured and mindful approach to govt.  I mean, there has been so much change in the last 30 years.  The internet has changed so so much about everything and GenX has had to adjust through the entire show.  The strength of managing change I think is what will enable GenX to do what is necessary.

 

[Navin Johnson]

How can anyone take our money seriously when we create 20% more of it in a short period. 

Probably some Econ 101 stuff that I don’t understand but this seems pretty bad. 

You create the deadliest military known to man and force the rest of the planet to keep reserves of said currency.  Pretty simple really.

 

[Don't Toews Me]

https://fredblog.stlouisfed.org/2021/01/whats-behind-the-recent-surge-in-the-m1-money-supply/