That money existed is what President Trump is hinting at but was hidden. Just like the negative figures were hidden and siphoning away wealth this wealth was in the green and hidden.
So money already in existence can not cause inflation as it was already printed and it is just merely unaccounted money that is not being circulated.
I'm referring to the inflation that results from many, many people suddenly having excess cash, not the inflation due to the constant printing of money.
That money was already printed so overall net inflation should be neutral.
You might see localized inflation on certain goods but overall inflation should not change because that money was already printed and not in circulation that was found.
It is counter intuitive to think about imagine if all the money outside of the US aka US dollar all flowed into the US and landed into the pockets of US citizens. Would that cause inflation as well? Or, because it is a separate pool in circulation outside of the US it is still a total net amount that has been printed already.
I think human nature (and business nature) would take over, and people, and businesses, would think "people have all this money so a higher price for goods and services are reasonable". After the big home buying boom of a few years ago, millions? of people had equity from selling their houses, and then the price for having various home improvement projects went way up due to a combination of limited contractors to meet the demand, and I think a lot of the increases in prices at places like Home Depot was due to that. There is no way a previously priced piece of PVC pipe at 75-cents went up to $2 due to "inflation". Ridiculous price increases in lumber and other building materials happened to, and the increases were way above the inflation rate.
Can you imagine how fast inflation would increase if everyone in the country suddenly had $5,000!
That money existed is what President Trump is hinting at but was hidden. Just like the negative figures were hidden and siphoning away wealth this wealth was in the green and hidden.
So money already in existence can not cause inflation as it was already printed and it is just merely unaccounted money that is not being circulated.
Euro Dollars still be Dollars
I'm referring to the inflation that results from many, many people suddenly having excess cash, not the inflation due to the constant printing of money.
That money was already printed so overall net inflation should be neutral.
You might see localized inflation on certain goods but overall inflation should not change because that money was already printed and not in circulation that was found.
It is counter intuitive to think about imagine if all the money outside of the US aka US dollar all flowed into the US and landed into the pockets of US citizens. Would that cause inflation as well? Or, because it is a separate pool in circulation outside of the US it is still a total net amount that has been printed already.
What if it was gold backed tho. I dont know enough about zeeconomy to know
I think human nature (and business nature) would take over, and people, and businesses, would think "people have all this money so a higher price for goods and services are reasonable". After the big home buying boom of a few years ago, millions? of people had equity from selling their houses, and then the price for having various home improvement projects went way up due to a combination of limited contractors to meet the demand, and I think a lot of the increases in prices at places like Home Depot was due to that. There is no way a previously priced piece of PVC pipe at 75-cents went up to $2 due to "inflation". Ridiculous price increases in lumber and other building materials happened to, and the increases were way above the inflation rate.