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RE: $1 isn't really $1 anymore ?!?

in LeoFinance2 years ago

Sorry, I didn't mean debt rate, but... it kinda depends on how you look at it. I'm not a financial professional, so please correct me if I'm wrong, but this is what I understood from it;

(I had to look it up again)
The current GDP of the US consists of 44% in government spending. While the Fed prints money to pay for government spending, any decrease in printing money would mean a decrease in GDP. From my understanding, this means that it is required to keep money printed 24/7 (hence the "The printing machines will be printing to keep up with printing") to prevent the public from panicking like crazy :D (since the moment that I learned about this, I already panicked, but this was maybe 6 years ago).

If the government decides to pay off debt, it will increase inflation. So, in a scenario where we print money, which adds to the debt, it seems to almost be impossible to pay off debt, unless we choose to have a higher inflation rate. But, inflation-wise, this is already the case right now (9.1%), even though we're not paying off our debt.

While numbers might not be accurate, if the whole gist of it is incorrect, just let me know (I'm a Dutch guy).