Re:U.S. Consumer Prices Rose Strongly Again in May
by streetcat1 on Thursday June 10, 2021 @10:21AM
(#27461105)
This is not correct. A dollar get "created" only when it is taken as debt, otherwise does not enter the economy. Actually , the amount of dollars decreased, as people paid down debt, thus destroying the amount of money in the economy.
What you see is a supply side inflation (less goods due to supply chain interruption) and not demand side (more money).
Re:U.S. Consumer Prices Rose Strongly Again in May
by xhrpost on Thursday June 10, 2021 @10:40AM
(#27461306)
I see this back and forth, could you help me understand why these dollars shouldn't be considered "created"? My limited understanding is something like this: Congress/President decide US citizens need stim checks. They decide to issue $1T+ in stim checks. The Treasury doesn't have enough money from taxes so it issues debt notes / T-bills. A lot of these T-bills then get purchased by the Fed with dollars they printed out of thin air. So how is it that printed Fed dollars are not ending up in the hands of the average citizen and thus entering the economy?
Re:U.S. Consumer Prices Rose Strongly Again in May
by seibelj on Thursday June 10, 2021 @10:36AM
(#27461253)
Stimulus checks are not debt - that’s helicopter money. And the “loans” made to businesses do not need to be repaid, or have 0% interest and are automatically forgiven after N years.
Re:U.S. Consumer Prices Rose Strongly Again in May
by nodesocket on Thursday June 10, 2021 @10:51AM
(#27461419)
PPP loans are not 0%, they are insanely low though at 1% interest. Also they are not automatically forgiven, you have to complete paperwork, and even then it’s likely that 100% of the loan won’t be forgiven.
Personal savings rate jumped to over 30% in mid 2020 and again above 25% recently (lines up w/ stimulus payments). Historically this value has been 3 - 10% for the last 30 years or so. So there's a lot of money on the sidelines
https://tradingeconomics.com/united-states/personal-savings