• EightBitBlood@lemmy.world
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    7 days ago

    Pretty sure it was unconstitutional for Zimbabwe’s fiat currency to do the same. But it did.

    How high is Dollar inflation going to get now before people realize market forces don’t care about their political feelings?

      • EightBitBlood@lemmy.world
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        6 days ago

        Thanks for proving my point.

        Since 2020, 30-40% of all dollars that exist now were printed.

        The inflation that’s happened since then is a result of more money being put into a system with the same amount of fixed goods (read Buffet & Friedman). It takes years for this adjustment to happen after printing, which is why inflation has been rising until 2025.

        It took Zimbabwe 10 years to hit hyper inflation for example. We’re still in year 5.

        But we’re doing the same as them: Printing more dollars.

        So in a few years, this means everything will simply be worth 30-40% more here. No matter what Fox TV personality in a government position tells you.

        Looking up data on how long we’ve been dealing with inflation now (4 years) and comparing that time frame to all the other times this countries inflation lasted this long (2008, 1929) reveals a pretty obvious result for what’s going to happen next.

        Awkward as hell I have to point you to open a history book from the 30’s about a previous US administration run by robber barons who thought Tariffs would stop rampant inflation. It did for a bit (where we are now) but what happened next was the great depression.

        I sincerely wish there was a way to place reminders in Lemmy so I can see how much your comment aged like milk by the end of 2025. Because it’s astounding to me how financially vulnerable you’re willing to be in the face of inescapable market forces that you simply ignore to believe whatever the TV tells you instead.

        There is a literal historical record for everything happening now, that’s very likely going to keep predicting what happens next.

        Inflation is artificially low because of Tariffs destroying demand (prices go down when people don’t buy things) the cause of our inflation (adding more money to the money supply) is still very much an active problem with no solution.

        Enjoy the Trump Depression. It’s going to be the “greatest” one we’ve had yet.

        • resipsaloquitur@lemm.ee
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          6 days ago

          Same old scaremongering about hyperinflation. Been hearing this for decades. It’s dogwhistle racism. Somehow public infrastructure and welfare are inflationary, but shoveling money at billionaires isn’t.

          • EightBitBlood@lemmy.world
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            6 days ago

            No where in the last decade has the fed printed 30% of all Dollars in existence. Tell yourself whatever lullaby you want to hear to sleep at night, but the US and the Dollar is unquestionably fucked.

            China is literally decreasing its purchase of US Treasury debt as we speak. So you should know as a proud defecit spending country, we actually need people to buy that debt so our system doesn’t collapse.

            Every economic indicator is flashing red whether you’re paying attention to it or not. Denying these clear facts as hyberbole is just proof of how you were propaganda’d into letting everything become so completely cooked that you’re now in ignorant denial that it’s hot.

            • resipsaloquitur@lemm.ee
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              6 days ago

              Just a bunch of nonsense. I couldn’t care less if China wants to park its dollars in treasuries or not. It makes no difference.

              • EightBitBlood@lemmy.world
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                6 days ago

                It makes no difference to you. To be very clear.

                But it makes a hell of a difference to any country whose debt China is no longer buying.

                Especially if that country has a budget always in the negative like the US.

                How about we just check back here in a year to see how much one of us is wrong? Because I’m sure by then you’ll be caring a lot more about how little of our debt China is then buying.

                • resipsaloquitur@lemm.ee
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                  5 days ago

                  Who cares if China buys US bonds? Or doesn’t? The US has a fiat currency so it doesn’t have to issue bonds to fund spending, unlike states like California or Portugal.

                  If you want to solve the deficit without increasing inflation, tax the rich. They seem perpetually worried about inflation and can afford higher taxes.

                  But government spending is private saving, so I’m not sure why you want to trim government spending. It always leads to a crash. Look at Clinton’s surplus and the dot-com meltdown.

                  • EightBitBlood@lemmy.world
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                    5 days ago

                    If you Google:

                    “fiat currency debt spending”

                    Here is the first AI result: (bold emphasis is mine)

                    • Fiat currency is a government-issued currency not backed by a physical commodity (like gold) but by the issuing government’s credibility.
                    • Governments can issue debt (bonds) to finance spending, and this debt is typically denominated in the nation’s fiat currency.
                    • The ability to create and manage fiat currency gives governments flexibility in responding to economic needs and influencing monetary policy.
                    • However, excessive debt can lead to concerns about the government’s ability to repay, potentially eroding trust in the currency and leading to inflation or devaluation.
                    • Inflationary effects: Increased government spending, especially when financed by printing more fiat money, can lead to inflation if the money supply grows faster than the economy’s production of goods and services.
                    • Inflation risks:  Excessive reliance on debt and monetization (printing money to finance debt) can lead to inflation or hyperinflation, eroding the currency’s purchasing power.

                    If you have a source stating anything close to what you’ve been saying instead, nows the time to use it. Otherwise, you are objectively wrong, and above is the proof.

                    Followed by the fact Moodys just downgraded the US’s credit rating for the first time ever:

                    https://www.reuters.com/world/us/moodys-downgrade-intensifies-investor-worry-about-us-fiscal-path-2025-05-18/

                    (And Clinton’s surplus is the crash you want to focus on? Really? Anything else maybe happen around that time in 2001 to cause that market issue instead? Maybe something in September you were never supposed to forget if you are an actual American?)

          • 7toed@midwest.social
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            6 days ago

            And what are we currently printing money for again? I don’t say it’s wellfare programs. Funding for safety net programs will almost by definition be infinitely less than what the govt dedicates to defense contractors, to conflate that is to perpetute what you think is a dogwhistle to keep social spending limited at best. Regardless what money is ‘printed for’ it still adds to the tab the same across the board. Take COVID spending, we really did not decrease say defense spending accordingly, so that did absorb some of the inflationary money injected into the economy.