It's not that we are "giving the Saudi's dollars", the agreement was for Saudi to trade oil in dollars only regardless of the buyer. All countries trading with them would need dollars. This creates a demand for dollars and has for a short time kept some value in the dollar. Less demand is not good for any one holding dollars as it will soon be worthless. Your purchasing power will be greatly reduce. So your statement is true "be more for everyday Americans" you will need it!
Imagine all that "money" comes back to America. Your house is stacked up in every room with paper money higher than your head. And because there's way too much of it, they've devalued $100 bills to buy less than a hundredth of a penny worth of stuff. Happy now?
Can I sell you a wheelbarrow to take enough to the bakery for a loaf?
There are several reasons why more money won't devalue the currency. First is that if everyone had more money, they would probably save more of it as well. More money also means more technology, which makes people more efficient. Things like Roombas, washing machines, and iPhones mean that people can do more and create more value. Higher efficiency will drive down the cost of producing goods. Not to mention, if someone was selling a loaf of bread for a $100, no one would buy it, so the free market is self-correcting.
Roombas, iPhones, and washing machines will do nothing except lead to mass societal decay through rampant lethargy and excessive dependence on convenience.
That's the beauty of it. The government doesn't have to print more money. This is basic supply and demand. If there is less demand, then there will be more money without having to print another dollar, it's fantastic. With this extra money, we'll be able to drill more oil domestically.
Well, that’s an interesting theory. Here’s another one, the value of the petro dollar will crater because it will lose its worth because it will no longer be the global reserve currency.
Yeah, if we're not giving the Saudi's dollars, then there should be more for everyday Americans.
It's not that we are "giving the Saudi's dollars", the agreement was for Saudi to trade oil in dollars only regardless of the buyer. All countries trading with them would need dollars. This creates a demand for dollars and has for a short time kept some value in the dollar. Less demand is not good for any one holding dollars as it will soon be worthless. Your purchasing power will be greatly reduce. So your statement is true "be more for everyday Americans" you will need it!
Imagine all that "money" comes back to America. Your house is stacked up in every room with paper money higher than your head. And because there's way too much of it, they've devalued $100 bills to buy less than a hundredth of a penny worth of stuff. Happy now?
Can I sell you a wheelbarrow to take enough to the bakery for a loaf?
There are several reasons why more money won't devalue the currency. First is that if everyone had more money, they would probably save more of it as well. More money also means more technology, which makes people more efficient. Things like Roombas, washing machines, and iPhones mean that people can do more and create more value. Higher efficiency will drive down the cost of producing goods. Not to mention, if someone was selling a loaf of bread for a $100, no one would buy it, so the free market is self-correcting.
Qled, you're trying to convince everyone here that inflation and hyper-inflation don't exist.
Good luck with that. Well, I'm done here.
Not so much that it doesn't exist, but that I don't think this will cause it.
Roombas, iPhones, and washing machines will do nothing except lead to mass societal decay through rampant lethargy and excessive dependence on convenience.
Ditto for any other such technology.
So what is the plan then? Should we all go back to farming with hand tools? Do you have a washing machine in your home?
Because the federal reserve isn’t printing enough for everyone to have? Really, that’s your answer?
That's the beauty of it. The government doesn't have to print more money. This is basic supply and demand. If there is less demand, then there will be more money without having to print another dollar, it's fantastic. With this extra money, we'll be able to drill more oil domestically.
Well, that’s an interesting theory. Here’s another one, the value of the petro dollar will crater because it will lose its worth because it will no longer be the global reserve currency.
And what are countries going to use instead? Euros? Chinese Yuan? Rubles? All of these are a joke compared to the dollar.