Creeks criticism of cfury round two since the message boared deleted my post
CFury contends printing money does not cause inflation, only excess demand causes inflation.
It's important because it reveals how totally out of his league he is while discussing any monetary policy, as are all Obama supporters.
In 1932 an ounce of gold was worth slightly more than $20 an ounce and it had been the same for many years. Then one could take a $20 Greenback bill to the treasury and exchange it for a $20 Double Eagle that contained about 0.97 ounces.
Today it takes roughly 85 of those $20 bills to acquire the same coin. The actual coin can still buy as much or more than it could in 1932 in likewise limited commodities like real estate.
8500% inflation in 80 years for printed play money, and Obama is financing a significant portion of the debt with the printing presses rather than borrowing. IMO hyper inflation coming at some point.
So what, sometimes in the past there has been labor demand and wages rose up as a consequence.
You could try explaining again how printed money taken up by the investor class automatically puts it into general circulation when it is well understood that they actually invest in driving assets higher.
Inflation cannot occur without consumer demand. I gave you a Forbes article to explain it.
It is important because it reveals how the RWNJ accepts as unconditional the theories he is fed and takes them without a shred of critical thinking.
Hawcreek12 is stuck in election themes he hears on the news he watches.
In modern economies, relatively little of the supply of broad money is in physical currency. For example, in December 2010 in the U.S., of the $8853.4 billion in broad money supply (M2), only $915.7 billion (about 10%) consisted of physical coins and paper money. The manufacturing of new physical money is usually the responsibility of the central bank, or sometimes, the government's treasury.
Contrary to popular belief, money creation in a modern economy does not directly involve the manufacturing of new physical money, such as paper currency or metal coins. Instead, when the central bank expands the money supply through open market operations (e.g. by purchasing government bonds), it credits the accounts that commercial banks hold at the central bank (termed high powered money). Commercial banks may draw on these accounts to withdraw physical money from the central bank. Commercial banks may also return soiled or spoiled currency to the central bank in exchange for new currency