Does printing new money to pay for things cause inflation?

[g5000]

The money would be debt and interest free. It would be a grant instead of a loan.

We are currently $30 trillion in debt.

What do you think printing an extra $30 trillion in cash would do?

 

[22lcidw]

Lincoln's greenbacks did that.

Greenbacks were used in wars because gold and silver backed currency could not bring a war machine to full bloom fast enough. So, before 1913 temporary changes were made during conflicts if needed. If you noticed, we have been in many expensive conflicts since 1913 and our military has endless tens of trillions spent on it with many trillions unaccounted for.

 

[22lcidw]

no. no it’s not owned by them. It’s owned by the Govt, controlled by Govt employees

The government owns the printing presses. The government employees print the money or mint the coins. The owners of the Federal reserve with their New York Fed head as their agent put the orders in. And they are even represented in Biden's cabinet with Yellen.

 

[eagle1462010]

Does a bear shit in the woods?

 

[struth]

The government owns the printing presses. The government employees print the money or mint the coins. The owners of the Federal reserve with their New York Fed head as their agent put the orders in. And they are even represented in Biden's cabinet with Yellen.

The Federal Reserve is a different agency then the US Tresuary and US Mint

and the NY Reserve bank is not the head of the Federal Reserve. The Board is HQ is in DC and they are appointed by the President

 

[22lcidw]

The Federal Reserve is a different agency then the US Tresuary and US Mint

and the NY Reserve bank is not the head of the Federal Reserve. The Board is HQ is in DC and they are appointed by the President

The New York Fed head is the head. All of the others are just on the board. Agents of the globalists. They are powerful enough now where they are trying to move to not give loans/financial instruments out to oil based companies and only green ones.

 

[task0778]

So then pulling money out of the economy would have the opposite effect?

Generally, they pull money out of the private sector by raising taxes, which to my mind should be the only reason to raise taxes at all. But the problem is that they raise govt spending by a greater amount and so the benefit is gone with respect to inflation. The other thing they do is whatever they can to restrict the movement (flow) of money. That is why the Fed is starting to raise interest rates and they have stopped their QE program. All these actions have the effect of slowing down economic growth; higher taxes and less borrowing and investment results, and I believe the thinking is that the production of goods and services will eventually catch up to the money supply. But that doesn't solve the problem of the federal gov't spending trillions of dollars that exceeds the revenue coming in. Directly or indirectly that money ends up in the economy without a corresponding increase in production, which increases inflation.

 

[struth]

The New York Fed head is the head. All of the others are just on the board. Agents of the globalists. They are powerful enough now where they are trying to move to not give loans/financial instruments out to oil based companies and only green ones.

hahaha no

 

[task0778]

hahaha no

Actually, there is some truth to that:


Then there’s the not-small problem of financing. Companies can’t explore and drill, or build pipelines, without capital. Biden financial regulators allied with progressive investors are working to cut it off. The Labor Department has proposed a rule that would require 401(k) managers to consider the climate impact of their investment holdings.

The Securities and Exchange Commission is expected to issue a rule requiring companies and their financiers to disclose greenhouse gas emissions. Mr. Biden has nominated Sarah Bloom Raskin, of all people, to be the Federal Reserve’s top bank supervisor. Her top priority is using bank regulation to redirect capital from fossil fuels to green energy.

Large energy producers are buying back stock and redirecting capital to renewables because they see the Administration’s writing on the wall. Small independent producers are eager to take advantage of higher prices but can’t get loans. Many relied on private equity during the last shale boom, but now these firms are cutting them off.

Opinion | Biden’s U.S. Oil Embargo

 

[Stormy Daniels]

Only if the new 1,000 people only consume and don't also produce.

Consume or produce what?

 

[Toddsterpatriot]

It is owned by private bankers. Globalist Bankers, financiers and industrialists make up most of them. Rockefeller, Morgan, Warburg and Rothschild to name a few. The Creature from Jeckyl Island is a time-honored book on this and other events in history. They control the printing presses. They tried a few times in our history to bring a fiat currency into existence and we ended up back to gold and silver currency. These are the real powers of the world. Soros is their butler.

It is owned by private bankers. Globalist Bankers, financiers and industrialists make up most of them. Rockefeller, Morgan, Warburg and Rothschild to name a few.

No it isn't.

The Creature from Jeckyl Island is a time-honored book on this and other events in history.

It's an error filled joke.

 

[Toddsterpatriot]

Consume or produce what?

Goods and services demanded by the 2000 people in the economy.

 

[Stormy Daniels]

Goods and services demanded by the 2000 people in the economy.

What if they consumer or produce things not consumed or produced by those 2000 people?

Let's say they all jump in together on what they think is a great business idea--maybe producing and selling high end dinglehoppers that connect to your smartphone. But it turns out that nobody really likes the idea, so despite pouring their blood, sweat, and tears into it for three years, the business eventually shutters. Would printing extra money during those first three years cause inflation?

 

[Toddsterpatriot]

What if they consumer or produce things not consumed or produced by those 2000 people?

Let's say they all jump in together on what they think is a great business idea--maybe producing and selling high end dinglehoppers that connect to your smartphone. But it turns out that nobody really likes the idea, so despite pouring their blood, sweat, and tears into it for three years, the business eventually shutters. Would printing extra money during those first three years cause inflation?

It was your example, you tell me.

 

[Ropey]

Does printing new money to pay for things cause inflation?​

That is the definition of inflation.

For.

Inflating the money deflates the value. The numerator increases while the value of the denominator is constant.

Do the math.

 

[Stormy Daniels]

Does printing new money to pay for things cause inflation?​

That is the definition of inflation.

For.

Inflating the money deflates the value. The numerator increases while the value of the denominator is constant.

Do the math.

That assumes that money operates in a zero sum fashion. I.e. the more money you make, the less money is available for me to make.

 

[Stormy Daniels]

It was your example, you tell me.

Actually, it was Woody's example. But my point is that I don't think population size is a meaningful factor to address the question at hand, as doing so requires incorporating several additional factors as well, and would seem to me to devolve to simply saying "it's complicated."

 

[task0778]

That assumes that money operates in a zero sum fashion. I.e. the more money you make, the less money is available for me to make.

I don't believe that's true. Inflation is all about pumping more money into the economy without more production. So both of us get more money without an equal amount of more goods and services. It's like the COVID Relief checks we all got, free money that nobody earned by being more productive. That's inflation.

 

[busybee01]

This is often discussed in a variety of ways. I remember a few years ago there was this idea floated that Obama could order the mint to create two $10 trillion coins, then have them deposited into the federal reserve to pay off the debt. The pandemic emergency payments and unemployment benefits have often brought the conversation to whether we're simply making money out of thin air.

So let's talk about it. Do you believe that printing money will will cause inflation? Why, why not?

The biggest beneficiaries of Fed policies were big businesses. They received trillions of dollars from the Fed. That dwarfs the amount of money that individuals received. In addition, income inequality grew even more quickly during the pandemic. Around 6 trillion dollars flowed from the lower and middle class to the wealthy. The emergency payments and unemployment benefits allowed people to stay afloat when people were being laid off in record numbers.

Here is another thing to consider. The payments ran out beginning in May of last year. That meant ordinary people were getting less money. By your reasoning, inflation should be down.

The thing we need to look at is how much competition there is in a particular industry. When we have near monopolies or oligopolies, companies have the power to raise prices. The meat industry is a oligopoly and prices have increased rapidly. Ranchers are saying they are not getting a whole lot more money so where is the money going to? Meat companies are enjoying record profits. Look at a industry where there is competition. Look at televisions. I shop at Walmart quite a bit. The prices initially rose but have since come down to pretty close to where they were originally.

Right now CEOs are bragging they can raise prices with impunity. Their financial results show that. Despite their claim they are merely passing on their increased costs, but they are showing huge increases in their profits. This is clear proof that they are raising prices to increase their bottom line not to pass on increased costs. According to a Fed poll of oil executives, around 60% say that shareholders are the ones that are stopping them from drilling not politicians.

 

[Stormy Daniels]

The biggest beneficiaries of Fed policies were big businesses. They received trillions of dollars from the Fed. That dwarfs the amount of money that individuals received. In addition, income inequality grew even more quickly during the pandemic. Around 6 trillion dollars flowed from the lower and middle class to the wealthy. The emergency payments and unemployment benefits allowed people to stay afloat when people were being laid off in record numbers.

Here is another thing to consider. The payments ran out beginning in May of last year. That meant ordinary people were getting less money. By your reasoning, inflation should be down.

The thing we need to look at is how much competition there is in a particular industry. When we have near monopolies or oligopolies, companies have the power to raise prices. The meat industry is a oligopoly and prices have increased rapidly. Ranchers are saying they are not getting a whole lot more money so where is the money going to? Meat companies are enjoying record profits. Look at a industry where there is competition. Look at televisions. I shop at Walmart quite a bit. The prices initially rose but have since come down to pretty close to where they were originally.

Right now CEOs are bragging they can raise prices with impunity. Their financial results show that. Despite their claim they are merely passing on their increased costs, but they are showing huge increases in their profits. This is clear proof that they are raising prices to increase their bottom line not to pass on increased costs. According to a Fed poll of oil executives, around 60% say that shareholders are the ones that are stopping them from drilling not politicians.

Cool. But, you didn't answer the question.