U.S. October PPI Rises 6.5% YoY, Highest in Nearly Four Years

Re:U.S. October PPI Rises 6.5% YoY, Highest in Nearly Four Y... by throw0101c on Friday November 13, 2026 @12:14PM (#50486538)

> We really need to reduce the fiscal/govt budget deficit. It's basically printing trillions per year […]

That's not how money is created:

* https://www.bankofengland.co.uk/explainers/how-is-money-crea...

When governments (or anyone) wants to sell bonds, the money has to already exist 'in the wild'. The selling of government bonds does not create new money/currency.

The pool(s) of money is already out there, and when bonds are offered, the people who control the pool(s) decide whether to buy or not.

[ Parent | on HN ]

Re:U.S. October PPI Rises 6.5% YoY, Highest in Nearly Four Y... by ericd on Friday November 13, 2026 @02:05PM (#50488223)

I was being imprecise, it's not literally making up the entire deficit with new money, though the Federal Reserve's securities did increase by $200B over the past year, and M2 money supply increased by $1.2T. A lot of the deficit is inflationary in that it adds to the financial balance sheets of the private sector, even when financed by bonds sold to non-banks. It pushes up aggregate demand even when it doesn't increase the money supply. When aggregate supply can't keep up, you get inflation.

[ Parent | on HN ]