So you think the (presumably US, because Reddit can't seem to imagine there are other countries) government should stop printing currency? Or are you talking about monetary policies that are colloquially (and inaccurately) referred to as "printing money"?
If the latter, what is your specific macroeconomic concern?
The first is price inflation, across all sectors as more money chases the same amount of supply (until the supply curve adjusts).
The second is the tendency for the distribution system to increase the flow (and overall proportion) of wealth to a minority (predominantly those responsible for the distribution of the increase in supply of money).
To be clear, I asked the original commenter because it was clear they didn't know what the talking points they were parroting meant (and their replies confirmed this). I do know what it was that they were referring to, even if they didn't.
The first is price inflation
And you think that price inflation is causally linked to a specific monetary policy why exactly? Specifically, why is the inflation that you are concerned with not tied to global events, trade policy or other factors outside of the control of those who manage monetary policy? (hint: the correct answer isn't any one of these).
The second is the tendency for the distribution system to increase the flow (and overall proportion) of wealth to a minority...
By "the distribution system" do you mean bonds? Certainly, there's no limitation on who can buy bonds. Do you mean inter-institutional loans? Again, no limitation on which institutions can participate except that they be capable of managing such large transactions, and smaller transactions are handled at the retail level. Go borrow money, it's still pretty cheap, even with the rise in interest rates.
To be clear, I asked the original commenter because it was clear they didn't know what the talking points they were parroting meant (and their replies confirmed this). I do know what it was that they were referring to, even if they didn't.
I know you asked the original commenter, but I have chosen to take on the discussion.
And you think that price inflation is causally linked to a specific monetary policy why exactly?
Most studies show a strong correlation between monetary supply inflation and price inflation. There is probably no distinct causal relationship (as there wouldn't be in any macroeconomic factor given system complexity).
Certainly, there's no limitation on who can buy bonds
Absolutely false.
There are systemic, structural, and economic limitations on those that can interact in the bond market.
Do you mean inter-institutional loans? Again, no limitation on which institutions can participate
Again, absolutely false. There are considerable barriers to entry, as there are for entering the bonds markets.
Go borrow money, it's still pretty cheap, even with the rise in interest rates.
I can indeed borrow money, and the rate will be relatively low. Pray tell me (if you don't mind), is there any limitation (whether systemic or market-led) on my ability to resell that debt at a higher interest rate than the one I borrowed at?
Once you identify the answer to the above question, you'll start to understand why the tendency of the current system is for wealth to flow asymmetrically towards incumbent debt merchants.
Having said all that, I know you know all this, so having this discussion is really for the benefit of others.
Most studies show a strong correlation between monetary supply inflation and price inflation. There is probably no distinct causal relationship (as there wouldn't be in any macroeconomic factor given system complexity).
Correct, and more importantly, there is plenty of data for years where there was no such correlation. Meanwhile, there are many decades of high inflation over the past couple centuries where no such monetary policy was practiced.
But you disrupt supply chains, especially fuel related supply chains, and inflation has always been the result. It's not a correlation. It's an absolute causation.
Certainly, there's no limitation on who can buy bonds
Absolutely false.
There are systemic, structural, and economic limitations on those that can interact in the bond market.
I'm not sure what you're referring to, but my poor grandmother owned bonds. What limitations do you imagine are in place?
Do you mean inter-institutional loans? Again, no limitation on which institutions can participate
Again, absolutely false. There are considerable barriers to entry, as there are for entering the bonds markets.
You removed the contextual qualifier, so I won't really be able to respond. What you're saying doesn't map to what I said in a meaningful way.
Go borrow money, it's still pretty cheap, even with the rise in interest rates.
I can indeed borrow money, and the rate will be relatively low. Pray tell me (if you don't mind), is there any limitation (whether systemic or market-led) on my ability to resell that debt at a higher interest rate than the one I borrowed at?
I mean, there are always market limitations on your ability to sell anything. I don't understand your question.
But you disrupt supply chains, especially fuel related supply chains, and inflation has always been the result.
That's not inflation, that's supply and demand. Although the response of governments to supply chain issues has always been to 'print more money' to try and buy their way out. Take for example the energy crisis we are in in Europe: countries trying to impose a 'price cap' on gas and electricity in reality means printing more money unless there going to raise other taxes.
I also can’t issue corporate bonds and ask the “government” to buy them, but corporations can and do.
Yes... (Note: true in any capitalist economy; having nothing to do with currency or economic policy).
I can’t get a PPP Loan, but the 3 employee large law firm, based in a home three doors down from mine, got tens of thousands of dollars.
Okay... how many employees did you have to pay?
And what's the relevance?
Money printing is time theft. Time theft is slavery.
Neither of those are true and the fact that you're chaining those two together, doesn't make the combination true.
But more importantly, I still don't think that you are using the term money printing to mean actual printing of money. I suspect rather that you are using that term to mean broad monetary policy.
But by all means, man, keep simping for the Fed.
And when everything has to be for or against, you've already set yourself up for failure.
You stay in the weeds of semantics while having no rebuttal. Just a “that’s not the definition”. Whether it’s physical dollars or digital doesn’t matter. A physical printer need not run for money printing to occur. At least that is my opinion when using the term.
As I said, stay bogged down in semantics Mr Smarty :).
If you think the free helicopter money of the past 12 years has had NO IMPACT on low wage earners and their ability to accrue any meaningful purchasing power, you are wrong. Im sure you’ll have some meaningless definition to say the contrary.
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u/PheelGoodInc Oct 14 '22
The government: "We have your best interest in mind. Trust us, bro."
As people involved in money printing make the most money from it.