Print away scumbags! There is nothing stopping you. Keynes put a hole in the fiscal dam when he made the simple suggestion that the government could overspend (deficit spend) in bad times to boost the economy but save during good times to even out the cycles. Governments spent more making larger and larger deficits -- anticipating better times. The dam burst when the yuan became a reserve currency and was accepted in the oil trade. You have a communist dictator able to create money. What can go wrong?
Inflation theory was based on dropping in a big chunk of currency would drive up prices (inflation) because it would take time for production of goods and services to catch up. Not today! Lead times are months or weeks -- not years. So print away!
Both... The national debt that Rand Paul keeps railing about is owed by the Treasury to the Fed... We pay interest to the Fed, which writes a check back to the Treasury. It keeps a little to pay the light bill et cetera.
Inflation happens when demand (money) exceeds supply (stuff - including services). If stuff/supply increases to match money/demand there will no inflation above the 2% the fed says is optimum.
Inflation has averaged less than 2% over the past 10 years... https://www.usinflationcalculator.com/inflation/historical-inflation-rates/
I don' t mean to insult you but you clearly have zero understanding of finance, economics, or economic history. That makes exchanging in this post highly frustrating.
I'll offer a bit, but I'm not going to school you here in matters that took me years as a student, and then professionally to understand intimately.
First, supply and demand is not a single, stand alone metric. That assumption is why I referred to Keynes as a retard. He was a rich kid born to an theoretical economist, academian father. He later, as a 'kept' civil servant, offered bureaucratic justifications for government to confiscate to his overlord cronies. No less than two generations of economic 'thinkers' who had zero experience in the real world.
What is so egregious about Keynsianism is that it relies on myopic considerstion of the long and short term economic indicators. Worse, as a theory it fails to weigh consumer psychology into account. And, it attempts to promote 'government creation of jobs as a remedy for unemployment. We'll go back to my earlier statement that gov doesn't generate revenue. That means that Keynes was actually the father of the Ponzi scheme. You cannot indefinitely 'steal from Peter to pay Paul' .
In summary, Keynes was a naive bureaucrat with no personal experience in the business world who willfully ignored some of the most educational snapshots from history, like the downfall of the Weimar Republic.
If you genuinely want to understand how economics really works you should start visiting the Von Mises Institute's resources.
Happy learning.
You write well and I guess you are a ldy -- which was a rarity in economics. Not to insult you but they were not an attractive bunch.
Keynes was a cool guy. He made millions managing Oxford's endowment by arbitraging currency between New Delhi and London. He also married the prima ballerina of the Russian ballet. Also he was very peculiar about his hands. He believed his hands revealed too much about him. He often hid them up his sleeves.
For some reason a bunch Lilliputians have decided to pin deficit spending on him...
I had a longer answer but a hiccup wiped it out,
I am going to cut to the chase. first, we are not going to go back to the barter system, The dollar is not going to collapse. Peter is not robbing Paul and deficit spending is not a Ponzi scheme. As long as man is evolving the economy will be expanding and we can use monetary policy to help it along. As long as inflation stays under 2%/year.
That said some spending is more inflationary than others, Investing in infrastructure which creates real jobs and enriches all Americans. Military spending is a great investment for keeping us safe and building great citizens. NPR, National Endowment of the Arts and their ilk are waste taxpayer money and should be eliminated.
If you're such a huge fan of deficit spending then educate us, if you will, on why all 50 states shouldn't just create their own currencies, and just "print away".
While you're at it maybe you can school us on the failure of the euro, Brexit, and the exit strategies being bolstered by numerous other European nation states, and the role that deficit spending played(s). Or, the absolute collapse of the Grecian State? Or, perhaps the legal collapse of the Finnish gov't last year? Or, how about the relationship of an entitys' debt and credit rating?
Lastly, your reference to Keyne's idiosyncrasies and his gambling history using arbitrage demonstrate just how superficial your understanding of the subject matter really is. It's actually pretty scary. Especially because your parents probably sacrificed to pay for you to go to a college where a bunch of dolt educators packed your grey matter with agendized data, rather than providing a real, balanced education.
Scary and actually quite sad.
Ahhh Love how you carry things to the extremes to prove your point -- every state with an open check book,,, Cuomo alone would Venezuela NY... You were right about it being part psychological, We have to hold back the loonies. Remember I said beyond 2% and how the money is spent matters. It needs to be truly an investment that returns value.
I went to UNC... Tenth Econ school the nation at the time... I made the only A in my econ stat class reputed to be the hardest class at Carolina... the next highest grade was a C. And Keynes' arbitrage is about as far as you can get from gambling, supposing you understand what arbitrage is. Buying rupees below market in London and selling them simultaneously in New Delhi for more pounds is hardly a risky venture...
I was hoping you would dare to prove me wrong about the attractiveness of econ women -- but alas, crickets.