Originally posted by: Jerry Ice 33
Well said on all points. Spot on!
The last point especially. It is really ironic the guys that use this language are the ones calling everybody else gay, etc. But I've brought this point up before. Kevin should be above that. This is standard humor and comebacks for those with GED's like Toad though. He just proves my point every time he does it. So I hope he keeps making those remarks over and over. Usually the truly dumb can't help it enough to stop it.
And to PJ's points. Of course there is more to inflation than just printing $. You are stating the obvious. He knows it was dumb printing all that $ as well. He is just trying to deflect.
What Jerry seems to be ignorant of--I mean, pathetically so--is that the government prints currency. It doesn't "print money." It prints currency to represent money that already exists.
I'll give an example. A new bank starts up. It gathers $10 million in deposits. Subject to the federal reserve rule, it can now lend $50 million to customers. That means that $50 million additional money is now in the economic system--so the Federal Reserve prints $50 million in currency to represent that.
In similar fashion, when people work, they create wealth. When people enter the workforce, they add to the number of people creating wealth. When individuals and businesses turn raw materials into finished products, they create wealth. If the government didn't print currency to represent that additional wealth, the economy would grind to a halt as a fixed amount of currency chased an increasing amount of goods. The end of that is a regression to a barter economy. Currency is a medium of exchange.
We're in an economic phase where an unprecedented amount of wealth is being created--simply because so much wealth was destroyed in the last two years. That's why the government must print currency--because it's a necessary tool. Without it, there would be no economic recovery.
The distinctions between money, wealth, and currency are subtle and I know, escape most people. Perhaps Jerry is capable of understanding what I said above--I think for Tommie-poo and Boiler, it's hopeless. But I'm certain that for all our conservitards, if they try to fathom economics by looking through their Trumpy-tinted glasses, they'll fail miserably.