Article claims US will never "run out of money", hyper-inflation is not a concern

[nodeal]

http://pragcap.com/not-technically-bankrupt-but-economically-bankrupt

There is the link. Thoughts on this?

[swiftfoxmark2]

There would be hyper-inflation if there wasn't a massive debt-deflation going on. In order to inflate the currency, banks need to lend and lending has dropped in the past couple of years.

The Federal Reserve can print all the money they want, but if the banks aren't lending, it doesn't get circulated. At least that is my understanding of the situation.

Don't get me wrong, we are definitely in a depression right now as the economy is contracting, only masked by the enormous government spending, so regardless of whether hyper-inflation or debt-deflation is happening, we are in trouble.

[Acala]

There would be hyper-inflation if there wasn't a massive debt-deflation going on. In order to inflate the currency, banks need to lend and lending has dropped in the past couple of years.

The Federal Reserve can print all the money they want, but if the banks aren't lending, it doesn't get circulated. At least that is my understanding of the situation.

Don't get me wrong, we are definitely in a depression right now as the economy is contracting, only masked by the enormous government spending, so regardless of whether hyper-inflation or debt-deflation is happening, we are in trouble.

Bank lending to the public is one source of new money. The Fed lending to the government is another. When the government must borrow from the Fed to meet its budget, that is new money and will ultimately be the source of the inflation that will eat us alive.

[Maximus]

There will always be paper money, the key is, will it buy anything?

[Travlyr]

There will always be paper money, the key is, will it buy anything?

Right. The paper dollar used to buy a silver dollar. In those days, $1million paper dollars would buy 1,000,000 silver dollars. Today, $1million paper dollars will only buy about 28,500 silver dollars. The inflation tax as it relates to paper money is very expensive. Debasement of currency sucks.

[newyearsrevolution08]

We won't ever run out of money but the use of the word "money" can be used in many ways. I think in the end we will stop printing due to some b.s. environmental save the trees reason and go 100% digital. Then no one can complain about more money being printed but then again you can't prove ANYthing exists once it is digital and nothing backing it.

[eduardo89]

We won't ever run out of money but the use of the word "money" can be used in many ways. I think in the end we will stop printing due to some b.s. environmental save the trees reason and go 100% digital. Then no one can complain about more money being printed but then again you can't prove ANYthing exists once it is digital and nothing backing it.

That's pretty much how it is now. The vast majority of money created by the Fed in recent years has been electronic. They simply add a few zeros to banks' accounts at the Fed.

[Philhelm]

That's pretty much how it is now. The vast majority of money created by the Fed in recent years has been electronic. They simply add a few zeros to banks' accounts at the Fed.

Which means that they steal from all of us. :(