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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US treasury notes are around the corner, backed by gold/silver!
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That's where stagflation comes in!
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Exactly, inflation is directly related to supply vs demand. How much money printed has no imperative impact on inflation.
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But if the money has to go somewhere, it's going to "inflate" that location. If consumers have it, and they want to spend, commodity prices perhaps get inflated. If $ printed goes to bail out corporate junk bonds, it might inflate that area.
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Respectfully, demand isn't explicitly weak. A supply chain disruption is limiting access to products and merchandise in high demand e.g. bleach, isopropyl alcohol, Lysol, hand sanitizer, paper towels... Normally inexpensive and low-demand are now high-demand and scare supply.
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The good news is that once we start seeing the supply return and remain in-stock well have a good indicator that things are returning to normal.
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My desire to eat hasn't changed, yet food supply chains have been disrupted.
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Totally agree. The 1970’s are not just around the corner. That period was the result of post WW2 labor policy. Unions are gone. Wage inflation anyone? Ha! USD is the keystone, but we are still the cleanest dirty shirt globally.
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So why print money if demand is weak? All that does it bail out the banks by proxy.
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Demand will rise again though, correct?
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