American Economics Thread
- Thread starter Bernard
- Start date
Sooner than you think: US police are now criminalising the homeless- who themselves are ordinary americans who are forced to be homeless due to COVID and inept government policies.
Japan's Government Pension Investment Fund is the largest pension in the world, and they just made changes to their portfolio allocation. Specifically, they made a record cut in the amount allocated to US Treasuries, cutting from 47% to 35%. This is just one more example of what has been taking place all over the world for a few years now. The world is dumping dollars.
D
Deleted member 15949
Guest
Japanese holdings of USTs has been stable for a decade+. Money printing is risk-free, inflation-free and permanently enhancing for economic growth.
Are you serious? Money printing is risk free? Inflation free? And enhance economic growth permanently?
What have you been smoking? No wonder you're the sleepystudent. You've probably been sleeping in class during your economics lecturers.
D
Deleted member 15949
Guest
Yes, have you not seen US data series? CPI on a 2019-2021 CAGR basis is at 2.X% while GDP growth is straight back at trend. Money printing is risk free. There has been *no* visible inflation or financial stability risk while at the same time, the US is growing far closer to pre-COVID trend than China, Japan or the EU.
OMG! I know your status says you're from Earth. But I really wonder. And your handle says you're sleepystudent. Are you sleepy or are you just a student?
What possesses you to come out with this statement that printing money don't affect inflation and growth, and are therefore risk free?
All economist, from the free market type, to the Karl Marx kind all agree printing money is not risk free, and it will lead to inflation. It just that the timing of this inflation is unknown.
In economics, we have an equation, much like e=mc2. And this is MV=PT or some economists prefer PQ. But it is the same. This is an equation which means it must hold true. I suggest you read up on it and come back to discuss this further.
And US is back on trend? But even take your assertion at face value. Back on trend is not, and never have been good enough on anyone's book. I'm teaching my students this now of the effect of 2008 great recession.
They too, tells me things are looking good as they are back on trend after the 2008 shock. But what they and you forgot to take into account is (and I can't draw a graph here on my phone. So your have to visualise what I'm saying).
That is after a drop in economic output. The economy has shrunk, and are starting from a lower stand point. So in order to catch up with lost output, economies needs to outperformed the economic "trend". The difference is known as the output gap.
Last edited: