Gold and crypto types seem to think of money as a discrete thing. "Money has its own intrinsic value that is based on demand and scarcity."
But if instead, you think of money as a share in a company, in this case "The US Economy," the situation looks very different. As long as the US economy is growing, printing money is not only ok, but good.
If the printing and the growth maintain the same rate, the value of the currency will remain stable. However, we opt for a small amount of inflation, 2%, to have the currency lead economic growth with surplus liquidity.
Taxes help apply deflationary forces in case inflation has overshot growth.
It's more complex than this, but you can totally print money forever.
This was posted in a facetious manner. Of course we can't just print money forever. Eventually the printed money becomes worthless.
The thing is, you kinda can print money forever.
Gold and crypto types seem to think of money as a discrete thing. "Money has its own intrinsic value that is based on demand and scarcity."
But if instead, you think of money as a share in a company, in this case "The US Economy," the situation looks very different. As long as the US economy is growing, printing money is not only ok, but good.
If the printing and the growth maintain the same rate, the value of the currency will remain stable. However, we opt for a small amount of inflation, 2%, to have the currency lead economic growth with surplus liquidity.
Taxes help apply deflationary forces in case inflation has overshot growth.
It's more complex than this, but you can totally print money forever.