Printing money for the population by a government without revenues or with excessive spending leads to inflation to the standards of Godzilla. Germany, in building up to WWI entered extreme inflation and forced this upon the world between 1914 and 1923. Germany again encountered inflation during WWII, but to a lesser degree because Hitler invaded other countries and raped them financially. This offset, somewhat, the burden of increased spending on the war effort and decreased funds from loss of tax revenue. Germany, and the rest of the world affected by this inflation, recovered after the war due to the increased productivity of it’s tax base as the citizens returned to productive work.(1,2)
Not by spending huge amounts of money on war effort and not by printing more money.
So Trump and the rest of our disingenuous government wants to counter the illegal devastation of our economy by forgiving debt payments in the private sector, hugely increase the debt burden in the government sector by offering small business loans and offering economic relief to the coronavirus-burdened-populous with benefit checks to offset the loss of income during the “epidemic” during a time when that same economy suffered a loss of tax revenue (decreased sales tax, decreased income tax, etc.). All of the rest of the financial obligations of the US government (welfare, social security, military, infrastructure maintenance, et. al.) continues.
Where is Uncle Sam going to come up with all this money to cough up? Considering we already have a multi-trillion dollar budget that we can’t meet.
And, how will the increase in Federal Bank Notes by the US government affect the extreme burden of existing monetary counterfeiting outside the US on US economy?(3)
Inflation to an extreme is how.
More cheery news from your grumpy Uncle Dave.
- https://web.nli.org.il/sites/NLI/English/collections/personalsites/Israel-Germany/Weimar-Republic/Pages/Inflation.aspx
- https://inflationdata.com/articles/inflation-consumer-price-index-decade-commentary/inflation-cpi-consumer-price-index-1940-1949/)
- https://opinionfront.com/how-does-counterfeit-money-affect-economy
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