Inflation, Deflation, Stagflation...

Discussion in 'Economics' started by kmiklas, Mar 20, 2021.

What will be the result of the limitless Fed money printing?

  1. Target 2% sustained inflation

    2 vote(s)
    9.1%
  2. >3% difficult to control inflation

    7 vote(s)
    31.8%
  3. Hyperinflation

    3 vote(s)
    13.6%
  4. Deflation

    3 vote(s)
    13.6%
  5. Stagflation

    5 vote(s)
    22.7%
  6. War

    2 vote(s)
    9.1%
  1. kmiklas

    kmiklas

    What will be the result of the unlimited Fed money printing?
     
  2. Let's just say when the fake party is finally over that this ends very badly.

    You can't fix debt with exponentially more debt (no matter how many of the "brain children" on the boards here think you can).

    If you are one of the people that thinks the Fed can "thread the needle" then keep smoking that crack pipe.
     
    Clubber Lang and kmiklas like this.
  3. They aren't printing unlimited money. It seems like the phrasing of your question is leading you to the answers that you want.

    I would say a brief spike above 2%. Followed by raising of rates.
     
    longandshort and KasperAnd88 like this.
  4. toc

    toc

    Either some very innovative financial engineering can save the day or outright hyperinflation.

    It seems Biden team is not showing any signs of tackling the debt problem with old school kitchen table mathematics i.e. cut costs n reduce expenses etc. Doing such maths for 10-15 years can very well heal the US financial books for the long term......but it seems the choice is not in that direction.
     
    countryBoy641 likes this.
  5. stockxpo

    stockxpo

    Under this program, the Fed purchased several trillion dollars worth of financial securities, mostly U.S. government bonds, from financial institutions, with the goal of pumping more money into the economy.
     
    kmiklas likes this.
  6. In my opinion, it would be - Target 2% sustained inflation.
     
    kmiklas likes this.
  7. kmiklas

    kmiklas

    They are adding liquidity to a variety of markets to keep them from locking up. Specifically, as a market participant and the counterparty to debt offerings.

    How would you phrase it?
     
  8. I certainly wouldn't call it unlimited. Even if it's alot, it's still limited and measurable.

    Personal incomes took a quick shot up during first stimulus. Then they receded to normal levels. Now they will shoot back up with the extra stimulus before returning to normal. There is still high unemployment of 6.2%. This far exceeds the 3.5% pre-pandemic rate. Lots of work to do.

    And even if they were "better safe than sorry" and may have put too much money out there... They have tools to get that money back if and when the time comes.
     
    nickolelo and piezoe like this.
  9. And they'll sell them back when they need to in 2-3 years or whatever.
     
  10. of all the inflation talks lately, yet gold has been going down, dollar is not really trash at the moment :). it seems inflation is something we can live with for the time being. (yeah because the FED actions said so :)
     
    #10     Mar 23, 2021