Does printing new money to pay for things cause inflation?

[Toddsterpatriot]

The Fed does the money printing not the federal government.

The Fed creates digital money, the Bureau of Engraving and Printing, part of the Department of the Treasury, does the printing.

 

[Woodznutz]

In other words, it would be printed.

So back to my original question.

What do you think would happen if the Treasury printed another $30 trillion?

That isn't going to happen.

 

[Woodznutz]

The Fed creates digital money, the Bureau of Engraving and Printing, part of the Department of the Treasury, does the printing.

Thanks.

 

[bripat9643]

Of course, but we've largely disregarded them. Some people can borrow their way to prosperity, but most cannot.

"Money answereth everything", but sometimes the answer is wrong.

You can't disregard the laws of economics anymore than you can disregard the law of gravity.

 

[bripat9643]

Investors are stopping companies from drilling not politicians.

Horseshit. Why didn't they stop them from drilling when Trump was in office?

 

[bripat9643]

The Fed does the money printing not the federal government.

The Fed is the federal government, moron.

 

[Woodznutz]

The Fed is the federal government, moron.

The Fed is the Federal Reserve Banking System, not the Federal government.

 

[bripat9643]

The Fed is the Federal Reserve Banking System, not the Federal government.

It's the federal government. Who do you imagine appoints the board of governors?

 

[Woodznutz]

Printing $30 trillion in cash isn't inflationary if you call it equity?

You're conflating equity with supply and demand.

 

[Woodznutz]

It's the federal government. Who do you imagine appoints the board of governors?

Do you believe the Fed is governed by the president? How about the Supreme Court? Do you think that the president governs the Supreme Court?

 

[dblack]

I wonder if there's a correlation between the people who think printing money doesn't cause inflation and those who think minimum wage laws have no negative repercussions.

 

[Woodznutz]

For the last 10 years or so the increases in M1 (and artificially low interest rates) have been offset by increased productivity.

^
No kidding. Very convincing.......

40 years of economic evidence and history put to the lie because you said "not really."

If you can show that productivity has increased as much as M1 over the last 10 years.....go ahead.

I'll help you start.

View attachment 623058

M1 | FRED | St. Louis Fed

View a measure of the most-liquid assets in the U.S. money supply: cash, checking accounts, traveler's checks, demand deposits, and other checkable deposits.

fred.stlouisfed.org

Looks like M1 went from about $2.2 trillion on March 5, 2012
to about $20.6 trillion on Feb 28, 2022.

Let's see your offsetting increased productivity over the same period.

No worries. It'll soon be gone...to China.

A farmer who won the lottery was asked what he intended to do with the money. He replied with a grin, "I guess I'll just keep farming til it's gone."

 

[bripat9643]

Do you believe the Fed is governed by the president? How about the Supreme Court? Do you think that the president governs the Supreme Court?

Are you saying the Supreme Court is not part of the government?

The president appoints the justices of the Supreme Court.
The president also appoints the board of governors of the Fed.

They are both part of the government.

I can't believe how many numskulls there are who believe the Fed is not part of the government.

 

[Toddsterpatriot]

You're conflating equity with supply and demand.

You're confused about inflation. And debt. And the Fed.

 

[Toddsterpatriot]

After the money is 'printed' it goes to the Fed, where it becomes debt.

How does it become debt at the Fed?

 

[Woodznutz]

Are you saying the Supreme Court is not part of the government?

The president appoints the justices of the Supreme Court.
The president also appoints the board of governors of the Fed.

They are both part of the government.

I can't believe how many numskulls there are who believe the Fed is not part of the government.

The point is that the Fed refers to the Federal Reserve Banking System, not the Federal government. Much like the SCOTUS doesn't refer to the Federal government of the U.S. Both operate independently from the U.S. government.

 

[Woodznutz]

How does it become debt at the Fed?

The Fed loans it to the economy through their primary banking system.

 

[Toddsterpatriot]

The Fed loans it to the economy through their primary banking system.

The Fed doesn't loan $20s.

 

[Woodznutz]

You're confused about inflation. And debt. And the Fed.

The Federal debt contributes to inflation, thanks to the Fed.

 

[Woodznutz]

The Fed doesn't loan $20s.

Are we back to that?