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Forum
-> Household Management
-> Finances
amother
OP
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Sun, Jan 03 2021, 10:51 am
Not a political discussion whatsoever.
My very limited knowledge of finance tells me that the more money the government prints, the more inflation there will be and the dollar will be worth less. If this wasn't so then the government should have been able to print their way out of any recession. In fact why bother collecting taxes from people? They could just print money instead. yet it seems that the government is printing and printing without any real consequence. Can this continue forever? Why hasn't there been any repercussions thus far? I sometimes hear about "the next generation" paying for all this printing. What does this mean exactly?
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amother
Oak
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Sun, Jan 03 2021, 11:01 am
If you didn't want it to be political - you should have made your title neutral.
Are you asking are we at risk for hyperinflation, and what is being done to mitigate that?
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amother
Natural
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Sun, Jan 03 2021, 11:02 am
Why do you think the government is printing money and not using the money in circulation?
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amother
Oak
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Sun, Jan 03 2021, 11:11 am
amother [ Natural ] wrote: | Why do you think the government is printing money and not using the money in circulation? |
Its a fact the Fed is printing money (which doesn't mean printing, rather creating).
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amother
Firebrick
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Sun, Jan 03 2021, 11:12 am
amother [ Oak ] wrote: | Its a fact the Fed is printing money (which doesn't necessarily mean printing, rather creating). |
How do you know it's a fact? And why do you think so? I understood that the stimulus money is coming from our Social Security account and taxes.
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amother
Tan
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Sun, Jan 03 2021, 11:14 am
amother [ Oak ] wrote: | Its a fact the Fed is printing money (which doesn't necessarily mean printing, rather creating). |
They're not actually, physically printing money, but if there are more outflows (spending) then inflows (taxes) where do you think that money is coming from? It adds to the national debt.
If the economy expands comparatively in the next few years it will be ok, but if it doesn't... inflation will kick in.
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daughterofgod
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Sun, Jan 03 2021, 11:26 am
In the simplest terms. No our federal government doesn't have all that money. They borrow from other countries. It's like you having credit card debt... Same idea.
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TranquilityAndPeace
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Sun, Jan 03 2021, 11:28 am
I once read that there’s never been a currency, in the history of humanity, off the gold standard, which lasted 100 years.
Gold is mentioned as valuable in the Torah, so it always retains value. (Unlike other, even more rare metals, that fluctuate a lot in relation to gold and silver)
When did we go off the gold standard, after WWII? So I wonder how much longer, in the long term, the dollar can last. Remember those stories of people using their Confederate dollars as insulation after the Civil War?
I don’t have any answers; it’s something I wonder about too. If the library would be open these days, I may spend a few minutes researching and taking out books on this subject....
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amother
Wine
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Sun, Jan 03 2021, 11:33 am
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leah233
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Sun, Jan 03 2021, 11:43 am
The government probably thinks along the lines of the old business joke.
"When you owe someone fifty thousand dollars that you can't pay back you have a problem. When you owe someone fifty million dollars that you can't pay back then he is the one with problem"
Or as Ronald Reagan once put it when asked what he will do about the deficit "It's more than big enough to take care of itself"
Meaning that once you owe so such you no longer care or even pretend to have any way of dealing with it or paying it back.
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amother
Peach
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Sun, Jan 03 2021, 12:33 pm
There is a conspiracy threory for that, which may or may not be true. But it goes like all the countries are so indebted the central banks need & want to roll out a worldwide digital system of currency and start fresh but if they told you all the details and downsides of it, no one would want it. So it has to be done incrementally where logic will rule the first few steps. Then when its too late & we realize the downsides, oh well for all the little people. It does have people with high education in this field are the ones saying this.
If true, it would decimate all middle class and we would be back to surfs and lords. Can you imagine being deleted? How would that impact the frum economy?
If not true would make for a great dystopian thriller.
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