Does the fed inflating the dollar help us in the long run?

[murray t turtle]

11 pounds. Man...

My first public job, one time when I got paid I took my entire week's pay in (real)silver dollars, was around $50, I think. I remember thinking "This don't feel like 50 bucks." It was 3 pounds of silver.

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Good thing you did not get Roosevelt dimes/LOL And this is not exactly silver , it more of a paper asset. SLV Went up 5.8% last 5 days, so even if we skip the armored truck ; i've seldom seen any real; estate I wanted to give 5.8% more in one week...………………………..

 

[JaniceOtero]

I think it’s a bit distorted. I think you should include the banking system to get a better understanding.

 

[bone]

The U.S. Federal Reserve has established nine new lending facilities early in 2020 in its efforts to supply the entire world with dollar liquidity. The Fed is pumping Trillions of dollars into worldwide banking facilities. The Fed created a Commercial Paper Funding Facility and a Money Market Mutual Fund Liquidity Facility. During the month of April in 2020, the Money Market Fund alone lent $53 Billion.

In 2020, the Fed created the Term Asset-Backed Securities Loan Facility - does that sound familiar to TARP in 2008?

In 2020, the Fed created the Primary Market Corporate Credit Facility, which buys debt or loans directly from corporations.

In 2020, the Fed created the Secondary Market Corporate Credit Facility, which buys corporate debt in secondary markets, including exchange-traded funds that specialize in high-risk, high-yield debt.

Care to elaborate ?

 

[murray t turtle]

I think it’s a bit distorted. I think you should include the banking system to get a better understanding.

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THAT;
+ all the SPY sectors. I would not want to try to buy 505 stocks or even 500.
BUT i would rather do that/SPY or or QQQ than buy 30 cash stocks....................................................................................................Those 30 dow stocks may pay good dividends.NOT bank insured/not a prediction.,

 

[bone]

So to summarize: if you look at the Bank of Japan in the 1990's and the Japanese economy since; and you look at the US Fed, the ECB, and the Bank of England in 2008 and the American and European economies since: you see deflationary pressure.

The Fed has been under its 2% inflation target for several years now, and the ECB has been struggling with 1% inflation.

We have quite a bit of data on this now, and quite honestly it is strange for people and politicians to worry about deflation. Economists the world over are looking at Central Bank coordination and policy in a different light now.

Care to elaborate ?

The U.S. Federal Reserve has established nine new lending facilities early in 2020 in its efforts to supply the entire world with dollar liquidity. The Fed is pumping Trillions of dollars into worldwide banking facilities. The Fed created a Commercial Paper Funding Facility and a Money Market Mutual Fund Liquidity Facility. During the month of April in 2020, the Money Market Fund alone lent $53 Billion.

In 2020, the Fed created the Term Asset-Backed Securities Loan Facility - does that sound familiar to TARP in 2008?

In 2020, the Fed created the Primary Market Corporate Credit Facility, which buys debt or loans directly from corporations.

In 2020, the Fed created the Secondary Market Corporate Credit Facility, which buys corporate debt in secondary markets, including exchange-traded funds that specialize in high-risk, high-yield debt.

 

[bone]

The 2008 action from the US Treasury and the US Federal Reserve was massive. Mega. Unprecedented. It shocked the world. And it gave other Central Bankers the confidence to coordinate their actions with the US Fed.

And the Fed changed the way that Economists and Politicians look at the way Central Banks function.

 

[piezoe]

All money printing is bad in the long run.

"Gold is money. That's it." -- J. P. Morgan

That's because gold can't be printed. "Money" in the Constitution was enumerated to be "gold and silver coin, only". For the same reason.

Once again Scataphagos (tr. "shit eater") comes through as a source of misleading information. Gold and Silver coin as tender is mentioned in Article I, Section 10, of the Constitution, but as a restriction on the States, not on the Federal Government, which shit eater would have you believe.

 

[piezoe]

it is strange for people and politicians to worry about deflation.

Really now! You may volunteer to pay your debts back with dollars worth more in buying power than the ones you borrowed, but I prefer not to. If we were a creditor nation, then a little deflation might be just fine. But under the circumstances, and since we are a nation that runs on credit, I think not.

 

[piezoe]

Unfortunately I agree with you on that one, the Gold standard will never come back, and even paper money will disappear from earth, the New World Order will make sure of that.

And don't forget to mention those liberals running the child sex ring out of a back room in a pizza parlor.

 

[brettdoyle]

No, inflation is a disaster for the US.

We are currently able to live beyond our means. We have large fiscal deficits, so the government is able to borrow money and spend it. We also have large trade deficits, which means we are able to consume good without producing them.

When inflation takes off Americans will have their standard of living reduced. The price of goods will increase, the supply of imported goods will decrease, their wages will lose purchasing power, and the government will be forced to slash spending since they won't be able to issue more debt.

Granted, some people who own real assets like real estate and stocks will become rich, but a lot of people holding dollar assets will be wiped out. People working a job and living paycheck to paycheck will have their standard of living reduced.