That should be the obvious answer, but we've been pumping cash into the economy for 12 years and we still aren't seeing any inflation.
Not that kind of cash. Money is still a limited good that people believe will have value in the future. If you flood the country with 60,000 dollars per year for each person plus whatever they already make, you will outpace the production of goods and those goods will cost more because of demand.
In theory, I completely agree. Thats why its hard to understand why we aren't beginning to see it occurring already. We seem to have fallen into the same deflationary trap that Japan has been dealing with for decades. It doesn't matter how much money they pump into their economy, they remain stagnant.
As long as Ramen noodles are six for a dollar, they will never make any money. Seriously, I think you underestimate the appetite of the American consumer. Yes, wages have been somewhat flat and the interest rates are low but dropping tens of trillions of dollars into the accounts of the world’s most ravenous economy would be like the beginning of a Hungry Hungry Hippos game (but with playstations and Hondas instead of marbles).
That has to be correct, but its what we've been doing already so this whole thing doesn't make sense. It's truly backwards.
I don’t know. Japan probably thinks so to and look where they are at. They need more fat Americans to move there.
Oh, there's no doubt in my mind at all that by the time inflation actually does hit, the currency will be reset so none of what we are doing will matter in the end. Thats part of why I'm saying they should just go ahead and start sending out checks to everyone.
