Re:U.S. GDP Shrank in Q1 2015
by NoPiece on Saturday May 30, 2015 @03:08AM
(#9629361)
Short answer: when you print money, borrowers and non investors lose money, while lenders and investors gain more. It creates more imbalance.
It is more complicated than that. If you print money, borrowers (e.g. 30 year mortgage) can win, because they get to pay back their debt with cheaper dollars. If you have credit card debt, you are probably in trouble. People who have saved, and invested (e.g. bonds) can lose, because their investments are devalued.
It is more complicated than that. If you print money, borrowers (e.g. 30 year mortgage) can win, because they get to pay back their debt with cheaper dollars. If you have credit card debt, you are probably in trouble. People who have saved, and invested (e.g. bonds) can lose, because their investments are devalued.