Economists only: What is the downside of printing and distributing trillions of dollars in an environment in which inflation is nil and demand is low? Who loses and when? @joshgans
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If two trillion dollars is destroyed and the Treasury Department creates one trillion to replace it. That's not inflationary.
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Another element to take into consideration is foreign demand for your currency, especially if yours is the global reserve currency. See: The Triffin Dilemma.
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Debt and deficits are deflationary. Federal Reserve QE (Quantative Easing) is inflationary. It's a push/pull that thus far has made inflation/deflation a non-event.
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It will absolutely be (digitally) printed. Treasury will issue bonds, the Fed will buy the bonds (indirectly). The Fed is creating money and lending it to the Treasury. Treasury pays interest to the Fed. Fed returns profits to Treasury at year end.
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Unlikely all of it will be printed, since it would be a giant increase in high powered $. Previously <$2T in high powered money, so this will double it. But if so, velocity, the rate money is spent, would have to fall by half. Such large changes make it hard to get things right.
End of conversation
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Essentially all money is printed. It also all belongs to the government. This is fine so long as it’s not out of control or abused to the point the trust breaks down on it. Meanwhile assets can often be the flip side to cash.
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I believe it is being borrowed from the fed but at near 0% interest
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Or, it can be electronically created from nothing (no need to bother printing anything that way, just create it and stick it in the bank accounts. Or buy Treasury bills)https://www.investopedia.com/ask/answers/041415/when-federal-reserve-bank-engaged-quantitative-easing-did-it-add-m1.asp …
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It’s credit, nothing more
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