Bidenomics = 20.00 McDonald's Adult Happy Meal

@wallstreetcappers

The difference was the economy was never fully shut down like it was during covid and printing wasn't out of control to the point that it would immediately affect inflation in the relative short timeframe. Covid put a stop to a well oiled machine that was designed to never turn off. The US and the world didn't have a text book answer on how to keep everything moving smoothly during a full shut down so the answer was to print so people could afford the basics needed to survive. You give people "free" money, people will spend it chasing goods and services. Giving the bare min to pay their bills or else banks would crumble. Money never sleeps, but the economy had to. The problem was, everyone got greedy with fresh money and they wanted as much as they can get. So prices increased under the guise of "supply chain issues". I would argue it was to keep profits up to keep stocks elevated because of leverage and derivatives. Nobody wanted the game to end. Energy companies are getting hit left and right from this admin so they raised prices to offset any set backs. When Pg&E gets sued, they raise prices that get passed on to their customers. If you want safer infrastructure to not get sued, you pass those costs onto the consumer. 

The answer to your question....money is fake. Money is a theory. It's too complex to answer some of your questions and nobody might actually have the answers. Do you? Is the derivatives market real money, or is it used as leverage that can cause extreme harm if tilted in the wrong direction? Why do we have a derivatives market? The money machine has to keep moving to prop everything up and the derivatives market is that water balloon that got left on the running faucet, the water is always running, it's just a matter of how fast and slowly that balloon gets filled before it pops. 

@wallstreetcappers

 Did Joe/ukraine not initiate ukraine with the whole nato thing? Plus Nordstream incident?

I thought putin said many times he didn't want nato on his border and gave tons of warning

aaaaaaaaaaaaaHAHAHAHAHAHAHAHAHAHA

@wallstreetcappers

 What i was getting at regarding USD getting  crushed....sorry I might have the terminology a bit off but here is a simple example

Joe blow has $100 saved before covid.

Fed prints 25 years worth of money in 2 years.

Joe blows 100$ is now the equivalent of $60 before covid (gas prices, food, etc all cost more)

Joe blow has done nothing. But his 100$ has plummeted in value 

Or another way to put it  

Joe blow spends 10 dollars at the grocery store before covid. He's gets a pack of bacon and a box of eggs

Joe blow goes to the grocery store with his same 10 dollars after covid...he leaves with only a pack of bacon and no eggs this time around.

This is normal over a 10-20 year sequence...but for it to happen in 2-3 is absolutely insane...

@dubz4dummyz

 What you are suggesting is not true, money printing is not government spending they are two different things. Money printing is the FED, government spending does not mean money printing. Making more debt does not mean more money has been created, a debt is an obligation and the government is not regulating monetary policy that is the job of the FED. 

Also if you look at the increase in government debt and remove out the increase in interest costs, the overall increase in debt for the last 3 years is not the summation of 25 years worth of monetary policy creation or government debt issuance. I think you are mixing concepts quite a bit.

Well said...especially the first part...this is exactly what happened

These wars and serious World unrest would never had happened under Trump. When Putin made a move to the Ukraine border, Joe pretty much had no answer and it was a matter of when and not "if" Russia would invade. As far as Iran/Middle East turmoil, Trump had Iran in a box and so poor they could not fund all the terror. Simple and Joe basically funded all the Iran terror with opening up all that money to them.

I think this "Don't" narrative is the weakest thing I ever seen. Almost every "don't" Joe put out they "Did"! We seem really weak on the World stage and all can see and take advantage of that weakness.

@dubz4dummyz

 You cant say that the FED printed 25 yrs worth in three years, they actually have been slowing their money printing the last two years and that is why rates have gone up, they are in a quazi period of tightening their balance sheet so really they are not doing what you are suggesting.

Prices and inflation are not at all related to the pool of cash floating around, that is 50 year old economic theory and as Ive discussed so many times it does not happen now, old theory is gone as banks are not circulating reserves created by the FED so the money multiplier does not happen. 

Inflation to me is due to much more than money supply and the FED has little power to move inflation in ANY direction up or down as we see for the last 20 years.

@wallstreetcappers

 I'm talking about the FED over-printing...not government spending

They created a larger money-pool (by printing) which lead to increased prices and weaker spending power of 1 USD...

Yes I may be getting lingo mixed up as I'm no where near an expert on the topic.  Hence my simple examples 

What did Trump do after the Kerch Strait Incident?   

Glad you cleared up what "inflation to me" meaning was and your understanding of it. 

Infusing a ton more money into the economy has the effects we now have. Add more money, inflation goes wild and we have to raise rates to try and tame it. Not really sure what is so hard to understand why we are at with inflation and what the current administration did to get us here.

Good debate and glad I am able to post for awhile and give a different view other then the Fubar/Star Trek/Zeus guy. Hope the debate can continue.

@wallstreetcappers

 I was generalizing an article I read

To be more precise I think the article stated they printed the same amount of money in 2021 (maybe 2022 as well) than they printed in the previous 18-25 years combined....

Again not exact numbers but that was the jist of it

Exactly...

This forum thanks you for your insightful and thoughtful commentary.

and therein lines the problem. The interest costs will continue to be chased as interest rates continue to rise. FED, IMO has not other choice but to raise rates which in turn will cost the govt more in interest as investors buy more bonds chasing higher returns which will also crush banks (see Silicone Valley Bank). The debts are not the problem, the interest being paid out IS the problem. Gov't paying out interest is the same issues with people paying interest on their credit cards. If the debt is never paid off (see student loans), the principal balance will forever stay up and interest will create a snowball effect and will do harm over the long haul. This is why banks keep stating the FED needs to lower rates. The higher the rates, the more they lose from their previous low % returns on their old investments. The banks are stuck unless FED lowers rates which will just cause inflation to continue upwards.

I feel a lot better WSC!

Usually I go straight to the  box, do not pass go and do not collect 200.00 for much less verses what the Fubar/Star Trek/Zues guy posted.

Hope we can all debate, bring some value and new posters to the forum.

Go America!

@dubz4dummyz

 The FED increased their balance sheet during Covid but that did not mean that it went into the hands of the consumer because it did not and does not. The reason why monetary policy fails is that the FED creates reserves but they are not fully circulated as in economic theory. The FED used to increase reserves, banks took those reserves and lends them to businesses and businesses buy raw goods, hire people pay wages provide goods and services...that is the monetary cycle we are used to. In theory I remember learning in college that for every 1 dollar "printed" would create a 3X money multiplier so with that concept it COULD create inflation. We do not have that taking place and that is why the FED could not create inflation nor can they stop it by ramping rates faster than they have in 30 years.

@BigGame90

I also see many smaller banks getting crushed or closing with many businesses closing shop and real estate vacancy. The Bidenomics caused so much turmoil in business and now the Bidinflation will finish off many small banks and small businesses near future.

Even Powell said just recently, "many small banks will fail due to commercial real estate" and that will be the beginning of minor panic. Just hope it does not spread to serious panic on the US economic or world stage.

@witswits

 Your jabs to others are why you get sent to the box, can you knock off the jabs you make on like every single post? Stop fixating on what other people do and just worry about yourself. 

Add value to the forum, follow the rules and guidelines and stop making combative annoying repeated useless messages.

@wallstreetcappers

 All I am saying is increased reserves (more printing) is the main reason the spending power of 1 USD is so crushed when compared to pre-covid

And that sucks for the average joe (98-99% of the population)

This post is acceptable? I and others get boxed for less? Just want to know the rules are the same and why poster Fubar/Star Trek/Zeus guy can post the exact same and the rules are different for a Trump supporter.

Just saying and the rules should apply the same to all. 

Thanks for helping in this matter.

@wallstreetcappers

 Was I off on post #52? I don't follow politics very closely but that was my understanding of Russia going into ukraine (among other potential factors...resources,etc..)

@BWS77

 You wanna touch on post #52...feel free

Useless to who? Seems many political posts have value to me and others. Are you saying others political views have no value?   Some do not like the views that are different from what they think.

Not trying in any way to be combative, only post my concerns/view in the political arena and hope to allow debate.

Thanks for the help and great debates ahead.