U.S. money printing, inflation and debt
Some body said that China printed money to stimulate its economy. Nobody does it more than the U.S. As of Mar 2021, U.S. all-in money printing was approaching USD13 t (USD5.2 t for COVID + USD$4.5 t for Quantitative Easing + USD$3 for infrastructure. That's more than the US spent in its 13 most expensive wars combined. Wars were used because they're the most expensive things we can think of. COVID costs total USD5.2 t, which is about 25% of GDP. USD5.2 t is the total cost of all American wars since 2001, and is greater than even the most expensive war in history, World War II with USD4.7 t (in today's dollars).
Mountains of money cause inflation. Inflation causes increases in interest rates, lowering bond price.
Money printing for Quantitative Easing (QE) appears to have worked, so the plan is to load on a bunch more paper money. Is there no limit?
Read the articles below to find out why the money printing caused inflation to hit a 40-year high and why it has different effects on different countries.
Robert Kiyosaki, author of the best-selling book "Rich Dad Poor Dad," has warned the continued devaluation of the dollar will likely make the currency worthless, especially with the excessive printing. In this line, he has termed the dollar 'fake money' or 'toilet paper'.
The author pointed out an indication of the domination's end as the world reserve currency can be viewed from other countries forming economic alliances. He cited the growth of BRICS (Brazil, Russia, India, China and South Africa) member countries that are opting to transact in another form of currency.
He further suggested that the world has had enough of the transacting in the dollar while supplying the U.S. with real goods.
In the meantime, Kiyosaki projects a possible global economic crash that has been worsened by the rising inflation, which he blames the Fed for failing to contain.
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microbalance : Good read and I’m in tune with the message. What an age we live in.
Momentum Trader : Cheap money for too long. Payback time. Everyone suffers
Sg-Jin : Fed is buying up stonks and bonds. When the fed has to sell the screaming will come.
HopelessChi : FED decide to curb this even thou printer can be heard. what the market want to know is a strong stimulus to kick-start the economy. doing opposite is the fate like china. everyone is selling. scoop low to be bag hold. smart money is exiting china and pumping US till then US is where money is made and china is where money is lost
slank HopelessChi: jd will pump back to at least 60 soon
bullrider_21OP microbalance:
MoneyComesMoneyStays : it's obviously clear that the debt only matters to people like you when a democrat is in the White House.
bullrider_21OP Momentum Trader:
bullrider_21OP Sg-Jin:
bullrider_21OP HopelessChi: Dumb money is pumping US until bubble burst like Dot-com bubble.
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