Question to forum liberals

[iNow]

2 hours ago, swansont said:

And now we have the crypto reserve, so the government can contribute to the ponzi scheme while others cash out. 

Yep, and don’t forget the sovereign wealth fund:

https://www.piie.com/blogs/realtime-economics/2025/us-sovereign-wealth-fund-confused-solution-undefined-problem

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Without robust governance, including regular credible audits and public information disclosure, an SWF poses a considerable risk of poor and overly politicized investment decisions, capture by vested interests, and corruption, leading to less foreign and domestic investment in the United States and slower growth.

,…,

Without much greater clarity and a broadly shared understanding on these issues, a US SWF risks becoming a misplaced fiscal gimmick and an inefficient and potentially corrupt diversion of public resources that could do long-term damage to the US and global economy and financial markets.

 

[Linkey]

20 hours ago, swansont said:

Inflation can be measured and compared with other countries that did not do quantitative easing. Why is it that they had even worse inflation?

Because other countries print even more money that the US government.

By the way, when the FED emits the dollars, it collects the inflational tax from not only the USA population but from the whole world. 

[dimreepr]

3 hours ago, Linkey said:

Because other countries print even more money that the US government.

By the way, when the FED emits the dollars, it collects the inflational tax from not only the USA population but from the whole world. 

Inflation exists bc we all insist that growth is essential and then we all make bets and the house wins, until it doesn't... 😉

[Genady]

When I lived in Israel in the mid-eighties and inflation was above 400%, there was a joke that it is cheaper to ride a taxi then a bus, because in the bus you pay before the ride while in the taxi you pay after.

[iNow]

5 hours ago, Linkey said:

other countries print even more money that the US government.

This is false. Which country prints Euros, for example? Are you unfamiliar with currency exchanges and how all are pegged against the dollar?

If facts no longer matter, why not just say inflation is caused by unicorns?

[swansont]

6 hours ago, Linkey said:

Because other countries print even more money that the US government.

Prove it.

Given how you make stuff up, I will not assume that  any assertion of yours is true without proof.

6 hours ago, Linkey said:

By the way, when the FED emits the dollars, it collects the inflational tax from not only the USA population but from the whole world. 

The FED “collects” inflation? Do explain, please.

US inflation is a problem for US exports, but we import far mor than we export, and there’s not a lot of exports I can think of that couldn’t be replaced from other sources. 

And the US is doing pretty well, inflation-wise

https://gfmag.com/data/economic-data/worlds-highest-lowest-inflation-rates/

https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=OE&most_recent_value_desc=false

[Linkey]

1 hour ago, swansont said:

Prove it.

I know, for example, that Russian government prints a lot of money for funding the Putin's war.

It is really strange if you deny that the quantitave easing is the cause of inflation. Ok here are the words of Arnold Swarzenegger about the money printing:

 

 

This was a link with timecode, does this forum supports the timecodes on youtube? If no, the start is at 26:06.

[swansont]

2 hours ago, Linkey said:

I know, for example, that Russian government prints a lot of money for funding the Putin's war.

Which is not what we were talking about, but Russia’s overall inflation rate far exceeds the US’s over the last several years.

https://tradingeconomics.com/russia/inflation-cpi

 

Quote

It is really strange if you deny that the quantitave easing is the cause of inflation. Ok here are the words of Arnold Swarzenegger about the money printing

Is the reason that you won’t address my point that you can’t back it up with facts? 

[Linkey]

9 hours ago, swansont said:

Is the reason that you won’t address my point that you can’t back it up with facts? 

I don't understand what facts do you need. What I say is absolutely obvious.

https://en.m.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic

 

Quote

Allied analysis of German statistics showed that printing of paper currency was being used to maintain tax rates much lower than in Allied countries, to fund relatively high levels of state expenditure, and that this effect was being worsened by unrestricted capital flight from Germany. 

 

[iNow]

10 minutes ago, Linkey said:

What I say is absolutely obvious.

And also wrong in several circumstances, such as when the economy is sluggish or shrinking. It’s not even just theory. It’s proven out time and again throughout history. Evidence shows your point to be wrong.

In those situations of slow activity QE or printing it gives a noninflationary boost to the economy and doesn’t dilute the money supply since it’s essentially a zero sum asset swap of bonds.

Your position is childish and ignorant and you may as well be expressing it with crayons on construction paper given its lack of precision and accuracy. Did you know it was also “obvious” that a brick would fall faster than an apple?

[swansont]

8 hours ago, Linkey said:

I don't understand what facts do you need. What I say is absolutely obvious.

https://en.m.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic

We aren’t discussing the Weimar republic.

The US did quantitative easing after the GW Bush recession, and inflation never topped 3.2% over the next decade. So what you are saying is not “absolutely obvious”

https://www.usinflationcalculator.com/inflation/current-inflation-rates/

We didn’t get significant inflation until after the COVID disruption, and half of the inflation was due to prices rising faster than input costs, i.e. profit margins expanded. Corporate greed.

https://www.epi.org/blog/corporate-profits-have-contributed-disproportionately-to-inflation-how-should-policymakers-respond/
https://www.theguardian.com/business/2024/jan/19/us-inflation-caused-by-corporate-profits

One driver was housing costs - rent increases jumped in 2021 and after.

https://ipropertymanagement.com/research/average-rent-by-year

[dimreepr]

As always the fundamental question is, who's going to pay?

The liberal's just want us all to pay 'our' bit towards 'our' advance, and the conservative's think they've already paid enough, with their blood, sweat and tears.

The old industrious mouse parable and why it's missunderstood... 

[iNow]

Post Covid inflation is mostly related to a massive freeze across all supply chains locally as people were not allowed to leave their homes all at the same time that checks were being written to people to help keep them afloat and pay their bills while out of work. It led to a spike in demand since consumers were suddenly cash flush at the same time supply was down and harder to find. 

This is explained by classic supply/demand curves and is elementary Econ 101. Invoking QE as an explanation is absurd and ideological and is a bit like concluding there are ghosts in your house because you hear a creaking noise.