Keep printing those trillions and trillions.

Ahhhhhhh......so keep spending that money because as we know it's the only way to keep the economy fueled. Even before the pandemic they were still printing money and saying the economy needed trillions to keep it propped up. Now we have the pandemic as an excuse for the next decade or 2 to keep the fed spending continously .....

Dallas Fed President Kaplan stresses need for more spending to keep economic recovery going
PUBLISHED TUE, FEB 2 20219:41 AM EST





https://www.cnbc.com/2021/02/02/dal...spending-to-keep-economic-recovery-going.html

 

Maybe he subconsciously fears that Charmin supplies will run out...

 

What's the alternative? Go into a depression? There is not sufficient, broad-based, demand to keep the economy afloat.

 

With all this printing going on, double digit inflation is inevitable in the next few years (like the 1970's/80's). If you ignore the flawed core CPI and fake Fed numbers, we might in fact already be in the double digits.

 

We already are, funny how we can print and print and print yet infla is a tame 2%, come on. No way possible.

 

This is probably wrong. There may eventually be double digit inflation, but it is very unlikely to happen "in the next few years." It won't be because of Federal deficits, not in the next few years anyway -- not without intervention of external factors beyond our control.. The double digit inflation we experienced previously was because of external factors. That said, excessive deficits not sufficiently supported by productivity could eventually lead to higher than desirable inflation. Recession, or worse, could eventually result if debt servicing, which is mandatory spending, is allowed to become too large a fraction of necessary total Federal outlays. Distortions in the economy are always bad if ignored and left unchecked. At the moment the distortion that must be addressed is an extreme slowdown of money velocity mainly in one sector of the economy.

At the moment, the greater risk is in "printing" too little.

 

You can look at other measures of inflation, such as the Big Mac index or breakevens on TIPS, and they all show persistent low inflation.

 

The inflation mostly goes into real estate and stocks, assets.

This is good inflation. Unless you want to get on the housing ladder that is.