Let’s go to <#587015719141507102>

I'm in usa too, I meant ronin

And ok

Cowona-Chan

the fed can print money forever though

Maybe, but with so much money in circulation it will devalue it over time, you know like inflation

Keep printing enough, you end up with what Venezuela's currency is at

Or after ww1, the Wiemar republic's mark was so worthless, it was used as wallpaper

Technically they can keep printing it, but the results could be disastrous

Especially considering the dollar is fiat, meaning it only holds value because we agree it does, as soon as people don't, then it becomes worthless

mysteriously we haven't had any problems with inflation though

which is why the fed has been so wiggidy wacky with our fiscal policy

I mean

Japan prints and still can’t cause inflation

Well they QE and buy a ton of corporate bonds

80 Trillion yen a year in corporate bonds (!)

Japan needs a baby bonus

Would be economically far more sound than the current mass QE scheme

When you massively expand the credit supply and get no inflation, expect bad things.

^^^^^

I think that print is just to replace damaged or lost currency

@Eoppa it'll at least devalue the dollars.
At least I assume it does.

@Ronin Not necessarily, it usually is factored into the capital structure, and then when the time comes, that misallocation turns into a recession

but wait how can you print more money and expect things to stay the same?
Like wouldn't more dollars mean they're going to be worth less?
I know that Fiat currency is inherently worthless but how can anyone wave a wand and magic more money in existence?

Because if it isn't being circulated through the hands of consumers, then the buying power stays the same

so it's going to companies.
wouldn't they bring it into circulation?

It does go to both, but companies tend to get more because they get larger loans and such often.

Credit expansion is typically bad wherever it goes

you mentioned that something bad will happen.
so what's going to happen?

like hyper inflation or will it be like the depression?

When we realize the capital structure is misallocated, that's when a recession hits.

https://media.discordapp.net/attachments/660990476702449667/692885554404130836/55fffb51b7e1d2e1ff490140d6aaaac8.jpg?width=677&height=677

@Eoppa you mean when people realize that first all their money got wasted
and then realize that their money is practically worthless?

@Ronin yeah, that's when interest rates go up, because there really isn't much resources behind the cash despite what they thought before

I wonder how many people actually know that fiat isn't actually worth anything.