There is no single answer so this is just one.There are a...

  1. 6,864 Posts.
    There is no single answer so this is just one.

    There are a plethora of talks on youtube that are warning that hyperinflation is on its way but without showing the pathway other than the danger of the mass printing of cash.

    So what are the options that are used and will be used to tackle the need to give away money in order to buy votes.

    The American Democrats plan to print money like there is no tomorrow. This should harvest tens of millions of votes but will create the usual problems.

    1. Traditionally the Fed prints bonds and investors buy them and this cash is able to finance the government.
    2. QE.... Recently the Fed has been printing bonds, then buying them off itself and selling them to investors later on.
    3. MMT. Instead of investors eventually buying the bonds the Fed or whoever just prints the money with no responsibilities. Like they have done in Zimbabwe, Argentina, Venezuela, Weimar Republic etc.

    So naturally with cash pouring into the economy the plebs will try to spend (demand) it leading to shortages (supply). Hence prices will rise and there will be empty shelves (not unlike in the USSR) and a zillion problems.

    So when inflation starts to spiral the clever monkeys begin to raise taxes. Hence they will need to print less except that the cash cows will begin packing up and leaving. No probs. They will just increase taxation on the remainder etc etc. When taxation gets so high there is little incentive to work extra hours so industry owners may go for shorter weeks etc. No worries the Democrats will nationalise these industries and place them under the dead hand of their flunky bureaucracy. Pretty much like happened in nazi Germany under National Socialism.

 
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