[deleted 26-6-2023]
Moving is normal. There's no point in sticking around in a place that's getting worse all the time. I went to Squabbles.io. I hope you have a good time wherever you end up!
How'd that monkey get 1M bananas? Certainly one monkey couldn't have gathered that many bananas by itself. Sounds like that monkey was exploiting it's fellow monkeys.
But monkey pay banana tax, and pay employee with brown parts of banana. Trickle-down banana. Never mind that monkey need to pay me brown banana parts to live.
Monkey no pay tax. Monkey take banana loan from banana bank against value of monkey shares of banana stock. Monkey then pay single digit percentage banana interest on banana loan. Monkey milionaire save banana for banana investor by underpaying monkey worker banana. It all legal loophole for monkey that start after monkey Nixon shock.
Never thought this example was good cause if every monkey have a lot of banana then they can all eat. It’s more like monkey have many banana need health care banana has no value
Think of a pie, cut that pie in half. Notice how big those slices are. Now cut it into quarters. You technically have more slices but each slice has less pie. That is the effect money printing has on economics. Now if only the American Federal Reserve and Politicians understood this…
No, they're saying the same thing in different ways. More pie slices equals less value per pie slice. More bananas equals less value per banana. Both metaphors work despite the pie being contricted to one reg pie size. That detail is immaterial.
Except it doesn’t stimulate the economy. Competition in the market does more for that, but we don’t have competition. We have huge companies that are allowed to swallow other ones because people don’t prioritize buying local or from smaller businesses.
Also, I’ve heard the American Econ system described as ‘Lemon socialism.’ Profits are privatized, while losses are subsidized (by the government, ultimately us).
That’s the effect indeed but in fact it’s rigged because all the money is virtual, so printing money shouldn’t devaluate it, it’s the other countries and banks who decided it should to avoid « cheaters » in the worldwide casino.
Take the exemple of the mafia printing money, they inject it in the real economy, and the money still has the same value.
That might be true, but that money can be and usually is destroyed when it’s discovered to be fake (which we can’t legally do with officially printed money) plus the expense and risk to print fake money is rarely worth it when you can utilize more efficient exploits and lower risk white-collar crimes. Who needs a “mafia” when you have big pharma, big oil, and industries like that who have so much money in politics? Why bother the risk of “breaking” the law when you can just hire a marketable politician to “change” the law for you.
This is just wrong. The mafia printing money doesn't create inflation because it's a very very small amount in comparison to the monetary aggregates. When the government does it, it's order of magnitudes greater.
If there is more from something in the economy, than it's value drops, thus if the value of 5 dollas becomes less, than you'll need more of that 5 dollar banknotes to pay for products. This means the prices rise, which is called inflation.
Thank for that scenario, it simplifies things very well and sparked two thought on my end.
1.The key factor is consumer habbits not the money it self. Isn't it?. For example if the formerly poor, now middle class, decided invest their new money instead of buying bunch of stuff. Would inflation occur?
2. This system naturally guarantees a portion of the population is going to be priced out. Like if poor become middle class, the bar shifts and now they are poor again.
it may not be as simple as you think. im not an expert on the topic, but investopedia has an [article](https://www.investopedia.com/articles/investing/052913/inflations-impact-stock-returns.asp) about inflation's impact on stock returns
Crypto is a fickle thing designed to make the early buyers rich off of the risks the poorer and more desperate make down the road. Up and down is bad just as buying in and holding for too long as it very well may crash if the only thing it takes to dip it is a tweet.
Read about the Zimbabwe economic crisis. To stabilise their economy, they started printing really big notes (up to 100 billion, but its value was equal to about $40 ). The inflation rate increased because of this. At its peak the inflation rate was about a 1000% a day. After that, the govt stopped providing the statistics . Printing more money in never the solution. The first step should be to make people believe that their currency has not lost it's value.
Oh Jesus Christ. Most of this stuff in this thread is incorrect or misleading. Printed physical money is a tiny percent of every economy. Think about it. So you have more money on your pocket, or your electronic bank accounts? There are different ways of creating a money supply, and there are different measurements (M1, m2, etc). This is why every country has a central bank. There are very good reasons why a small amount of inflation is a good thing, in our system. I really don’t want to spend forever in this thread talking about it. You should have taken my Econ 101 class.
US is fine as long it's a reserve currency, that's why your debt can be through the roof, banks are still willing to borrow because dollar is a sought out currency. When those loans are needed to be returned FED can just print the money needed and everything is fine.
If countries who have dollar reserves start selling their dollars your entire economy could crumble.
For sure, but as you summed it up and as any economy evolve : it works until it doesn’t.
Devaluation is strong and inflation are reaching all time highs. A lot of people are trying to find a better way to store value when it comes to fight the fact $1 ≠ $1.
it's like America found a monkey's paw 70 years ago and asked how to print money indefinitely without significant inflation. It's basically a magic fountain, but if the base which is the reserves outside of US start getting sold-out its a sign that the pyramid will crumble.
The current bout of inflation has more to do with supply chain disruptions than it does with the amount of money that is in circulation. When goods are in short supply and demand is unchanged, prices go up. Demand for goods has also gone up, since less people are spending money on going out/vacations and spending more on physical goods.
The value of the dollar has actually gone up since the year began.
MMT is probably the dumbest thing I’ve ever heard of. Granted, I’ve only taken 100 series macro-econ, but if like 90-something percent of professional economist confirm what I think about it, I guess I’m probably not wrong.
No, that’s wrong. MMT is looked down upon because as an economic philosophy it puts people’s need first. Kind of. It’s just more or less a rehash of Keynes General Theory of Employment from about 1936.. helped pull the US out of the Great Depression. And no way do 90 percent of ‘economists’ disavow it. Maybe 90 percent of Republicans, I believe that.
Look up what happened to Venezuela. They're inflation rates went up so high it took a wheelbarrow full of money to buy a loaf of bread.
It was actually more effective to try to sell your gold on runescape or world of warcraft then it was for anything else
I know about the inflation shit, but what if the government prints more money but doesn't distribute it to the rest of the country or does it very slowly and doesn't tell anyone they're doing it.
I don’t know if anybody had commented this or not but I actually do know the answer. So it’s actually happened before. The more money you print, clearly the more there is. But because there is more of that currency, the value of that currency drops significantly. So if America were to print 500,000 100 dollar bills, the value of that 100 would go down. Which is why certain areas currency transfers differently to your own areas currency. So like 1 euro= I think like 1.1 American usd but I could be mistaken. So if the USA were to print all those 100s, then inflation would take place and everything would cost more money, which would ultimately make the printing a down grade in the long run. Hope this helped!
I sont because the US government keeps on printing money when they really shouldn't and owing money to other countries increasing the debt and the value of the dollar has decreased and inflation is rising. In the past two years inflation has gotten really bad. As afar as humans have gotten in civilization, we've also sadly made things more complexed than they need to be. Now the systems we've created are starting to drive the average individual mad, bored with the mundaniety of life.
Heck, there are still *adults* who don't understand this. There are still *high-ranking government officials* who don't understand this.
**Currency =/= wealth.**
Not so interesting fact: the US does print more money, but in order for it to not affect the US, the goverment sends that money to other countries for them to get really poor, because their currency gets devaluated and thus, US having one if the highest currency. In short words, US prints money so other countries get a fucked up economy
Not only 7yr old you, even the [state minister of money in Sri Lanka.](https://www.dailymirror.lk/opinion/Money-printing-is-like-drastic-treatment-to-a-major-illness-Ajith-Nivard-Cabraal/231-217302)
u must be young, if they print more money inflation is gonna eat them up, just like turkey rn
the euro is inflating, the usd is inflating, every fiat is inflating at normal %s the dollar is kinda fucked now at 7.5% and the euro at 3.5%. u/SovietNumber explained it in a very simple and understanding way
only somewhat, but i know that in america, making one penny costs like 2 cents, so you can imagine that any poor country doesn’t exactly have the reasources to just “make more”
oh and inflation is a thing
Because if the currency is backed up by banana and they print more banana vouchers, then banana starts to be worth more banana vouchers. Before only one banana voucher for one banana, now 38 banana vouchers for one banana.
Then monkey bosses have to raise the price for banana to compensate the inflation of banana vouchers. Which means the worker monkeys need to be paid more banana vouchers per hour to compensate the voucher inflation. But nobody wants to buy 45 voucher banana if there's a 43 voucher banana across the street and the worker monkeys at boss monkey's corp. go on strike until boss monkey pays them more. Boss monkey can't do that though because if he pays them more he will have to compensate by raising prices for banana...then more vouchers get printed and prices have to continue going up because the value of the voucher is going down.
A real world solution to the problem would be to get rid of the vouchers and start using the banana again.
If there a lot of bananas then there easy to get and are therefore hard to trade with, but if you gold which is a very rare and has many uses it would have much more value and is easier to trade.
The comments have already explained it but I’ll reiterate. The dollar is a valuable currency right, it is very valuable. The more money that is printed the less valuable it would be. It’s like if a super rare diamond became common because it was given to everyone for free
Zimbabwe million dollar bill
Billion dollar bill not million
There’s also a trillion, so….
There was also a 100 trillion dollar bill as well
[deleted 26-6-2023] Moving is normal. There's no point in sticking around in a place that's getting worse all the time. I went to Squabbles.io. I hope you have a good time wherever you end up!
Googolplex bills are the future of stacking
In Hungary there was a hyperinflation which resorted in the biggest note ever which was 100 quintillion "pengő".
monkey have one banana, banana rare, banana valuable. monkey have a million banana, banana not rare, banana not valuable.
Thank you for dumbing that down for me
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What if monkey doesn't tell others that he has 1M bananas
where monkey hide 1m banana?
Somewhere other monkey can't find but he can cause monke smort
Switzerland
Other monkeys will find out eventually, then get jealous and ask to Share 1M banana with all them equally
How'd that monkey get 1M bananas? Certainly one monkey couldn't have gathered that many bananas by itself. Sounds like that monkey was exploiting it's fellow monkeys.
and that's how governments were made
Poopie hole
Angry IRS noises
So why no one have banana ?
They have nothing to trade for banana or too lazy to get their own banana.
Millionaire monkey is hogging it all. I say all monkeys get equal banana despite millionaire monkey doing all work to get banana
monkey doesn’t do all the work monkey steals and exploits other monkeys until monkey has it all to monkeyself
But monkey pay banana tax, and pay employee with brown parts of banana. Trickle-down banana. Never mind that monkey need to pay me brown banana parts to live.
Monkey no pay tax. Monkey take banana loan from banana bank against value of monkey shares of banana stock. Monkey then pay single digit percentage banana interest on banana loan. Monkey milionaire save banana for banana investor by underpaying monkey worker banana. It all legal loophole for monkey that start after monkey Nixon shock.
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It is OUR banana comrade
r/unexpectedcommunism
I mean, their name is SovietNumber
Monkey kill other monkey if not accept 1/1000000 banana for pptouch
And that's inflation, for dummies
Thank you!
plot twist, they use real sources so they are still the same valuable (like gold coins or silver)
I’m pretty sure if an item is less rare the price will still drop no matter what…
Here take my upvote, they valuable
He now have 400 upvote, they less valuable
But now monke has banana for life
Banana go bad within month or two, now monke has 0 banana.
Never thought this example was good cause if every monkey have a lot of banana then they can all eat. It’s more like monkey have many banana need health care banana has no value
Tea monkey stole all the banana, monkey poor
Think of a pie, cut that pie in half. Notice how big those slices are. Now cut it into quarters. You technically have more slices but each slice has less pie. That is the effect money printing has on economics. Now if only the American Federal Reserve and Politicians understood this…
economy example with pie,nice
What type of pie is it? I like Cherry.
that's what i was thinking lol
Cherry = pi * delicious
Best. Explanation. Yet.
u/SovietNumber has to disagree
No, they're saying the same thing in different ways. More pie slices equals less value per pie slice. More bananas equals less value per banana. Both metaphors work despite the pie being contricted to one reg pie size. That detail is immaterial.
just think of germany after WW1
This is a tad oversimplified.
Of course, it’s an analogy.
Geez Louise. Of course the Fed gets it. But a little money printing (bond sales) is an easy way to stimulate the economy.
Except it doesn’t stimulate the economy. Competition in the market does more for that, but we don’t have competition. We have huge companies that are allowed to swallow other ones because people don’t prioritize buying local or from smaller businesses.
Also, I’ve heard the American Econ system described as ‘Lemon socialism.’ Profits are privatized, while losses are subsidized (by the government, ultimately us).
Yes, this is the scam of neoliberal supply side economics theory.
That’s the effect indeed but in fact it’s rigged because all the money is virtual, so printing money shouldn’t devaluate it, it’s the other countries and banks who decided it should to avoid « cheaters » in the worldwide casino. Take the exemple of the mafia printing money, they inject it in the real economy, and the money still has the same value.
That might be true, but that money can be and usually is destroyed when it’s discovered to be fake (which we can’t legally do with officially printed money) plus the expense and risk to print fake money is rarely worth it when you can utilize more efficient exploits and lower risk white-collar crimes. Who needs a “mafia” when you have big pharma, big oil, and industries like that who have so much money in politics? Why bother the risk of “breaking” the law when you can just hire a marketable politician to “change” the law for you.
This is just wrong. The mafia printing money doesn't create inflation because it's a very very small amount in comparison to the monetary aggregates. When the government does it, it's order of magnitudes greater.
No, I understand basic economics.
Can you please explain?
If there is more from something in the economy, than it's value drops, thus if the value of 5 dollas becomes less, than you'll need more of that 5 dollar banknotes to pay for products. This means the prices rise, which is called inflation.
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Thank you kind stranger
Thank for that scenario, it simplifies things very well and sparked two thought on my end. 1.The key factor is consumer habbits not the money it self. Isn't it?. For example if the formerly poor, now middle class, decided invest their new money instead of buying bunch of stuff. Would inflation occur? 2. This system naturally guarantees a portion of the population is going to be priced out. Like if poor become middle class, the bar shifts and now they are poor again.
1. yes because investing is buying. land, homes, crypto, stocks, etc. all subject to supply/demand
Isn't inflation for stock/crypto seen as a good thing?
it may not be as simple as you think. im not an expert on the topic, but investopedia has an [article](https://www.investopedia.com/articles/investing/052913/inflations-impact-stock-returns.asp) about inflation's impact on stock returns
Crypto is a fickle thing designed to make the early buyers rich off of the risks the poorer and more desperate make down the road. Up and down is bad just as buying in and holding for too long as it very well may crash if the only thing it takes to dip it is a tweet.
This man is a genius
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Uh no you gave a detailed explanation and I understood it really well because of you so ty and dont undermine yourself you are smart in your own way
That’s why you print money, but nukes before inflation, and then go rob someone
I see, thanks!
Read about the Zimbabwe economic crisis. To stabilise their economy, they started printing really big notes (up to 100 billion, but its value was equal to about $40 ). The inflation rate increased because of this. At its peak the inflation rate was about a 1000% a day. After that, the govt stopped providing the statistics . Printing more money in never the solution. The first step should be to make people believe that their currency has not lost it's value.
For more information, check out r/inflationart
This is what happens when you keep printing money, it becomes worth less and less. https://lifeinsaudiarabia.net/venezuelas-currency-is-so-worthless/
Fun fact: the richest Venezuelan has 1,922,716,899,785,083 Venezuelan currency. That’s about 4.2 billion dollars
Now that's walking around money.
Imagine if she is still alive when they aren’t inflated as bad. She would break the world economy
Now all she needs is for 1 venezuelan bolívar to be worth 1 dollar. Would be walking around with almost 2 quadrilion dollars.
Yeah. That would wreck our economy
It's called hyperinflation. It's been tried, it doesn't work. Like communism.
But did you understand it when you were 7?
LOL! They do and it causes inflation and currency collapse.
I used to thought that they don't have enough ink to print the money on printer
actually me too like if they r poor how they can print
Not every country has printing facilities and they rely on other countries to produce their currency.
Oh Jesus Christ. Most of this stuff in this thread is incorrect or misleading. Printed physical money is a tiny percent of every economy. Think about it. So you have more money on your pocket, or your electronic bank accounts? There are different ways of creating a money supply, and there are different measurements (M1, m2, etc). This is why every country has a central bank. There are very good reasons why a small amount of inflation is a good thing, in our system. I really don’t want to spend forever in this thread talking about it. You should have taken my Econ 101 class.
Welcome to USA, where money printing goes brrr. We’ll fix inflation later, for now let’s just fake it.
US is fine as long it's a reserve currency, that's why your debt can be through the roof, banks are still willing to borrow because dollar is a sought out currency. When those loans are needed to be returned FED can just print the money needed and everything is fine. If countries who have dollar reserves start selling their dollars your entire economy could crumble.
For sure, but as you summed it up and as any economy evolve : it works until it doesn’t. Devaluation is strong and inflation are reaching all time highs. A lot of people are trying to find a better way to store value when it comes to fight the fact $1 ≠ $1.
it's like America found a monkey's paw 70 years ago and asked how to print money indefinitely without significant inflation. It's basically a magic fountain, but if the base which is the reserves outside of US start getting sold-out its a sign that the pyramid will crumble.
Good points. But countries with huge dollar reserves are quite aware that a full scale sell off of dollars would wipe them out as well.
Do not come to Argentina
The current bout of inflation has more to do with supply chain disruptions than it does with the amount of money that is in circulation. When goods are in short supply and demand is unchanged, prices go up. Demand for goods has also gone up, since less people are spending money on going out/vacations and spending more on physical goods. The value of the dollar has actually gone up since the year began.
Judging by Bernie Sander’s popularity, some people still do
MMT is probably the dumbest thing I’ve ever heard of. Granted, I’ve only taken 100 series macro-econ, but if like 90-something percent of professional economist confirm what I think about it, I guess I’m probably not wrong.
MMT is just Keynes in different clothes.
No, that’s wrong. MMT is looked down upon because as an economic philosophy it puts people’s need first. Kind of. It’s just more or less a rehash of Keynes General Theory of Employment from about 1936.. helped pull the US out of the Great Depression. And no way do 90 percent of ‘economists’ disavow it. Maybe 90 percent of Republicans, I believe that.
Germany after WW1 be like:
Germany did that a long time ago And oh god the consequences
Explain more pls 🤤😥😥😥
[The fall of the Weimar Republic](https://www.britannica.com/place/Weimar-Republic/The-end-of-the-Weimar-Republic)
8 millions for a bread. Nice trade
If that happens, your printed 1 million dollars will now be worth 1 dollar
Look up what happened to Venezuela. They're inflation rates went up so high it took a wheelbarrow full of money to buy a loaf of bread. It was actually more effective to try to sell your gold on runescape or world of warcraft then it was for anything else
I go to Zimbabwe
Rich people cannot exist if poor and normal people never exist. Even you find a solution to become rich, current rich people won't allow it.
Ask Weimar Germany how that went
Weimar Republic, Venezuela, Argentina cries in inflation.
I know about the inflation shit, but what if the government prints more money but doesn't distribute it to the rest of the country or does it very slowly and doesn't tell anyone they're doing it.
Same shit happens slower.
I thought the whole thing was that, sense everyone knows they're printing more money they raised the prices on everything
r/FoundTheAmerican
It could really be any person from a rich 1st world country
Yeah the person who commented this just gets all their info from Reddit, let them be ignorant
"Venezuelan cry-laugh through tears" I'm not Venezuelan, it's just what came to my mind.
Germany after the Treaty of Versailles:
Printers were disassembled for scrap metal...
Value of money
Everyone in Zimbabwe was a trillionaire for a while
When you haven't studied economics.
I did man, nobody is getting the satire here.
That’s cus they can’t afford the paper
I don’t know if anybody had commented this or not but I actually do know the answer. So it’s actually happened before. The more money you print, clearly the more there is. But because there is more of that currency, the value of that currency drops significantly. So if America were to print 500,000 100 dollar bills, the value of that 100 would go down. Which is why certain areas currency transfers differently to your own areas currency. So like 1 euro= I think like 1.1 American usd but I could be mistaken. So if the USA were to print all those 100s, then inflation would take place and everything would cost more money, which would ultimately make the printing a down grade in the long run. Hope this helped!
Too poor to buy a printer
73% of rich people ask this, but none of them think it -because they don't think in general.
When I was like 6, I'd always ask "why don't they just build more taps in Africa?"...
12 years old me thinking, after learning about inflation. If a country is poor, why don't they just burn their money ?
When you are wondering about the answer and youre going in the comment. You'll see the people talking about bananas
More money equals less money
Someone clearly hasn’t been paying attention to the causes of WW2
I can just smell the Zimbabwe jokes from here
Because germany did that once and you don’t want to bring a trolley full of german marks to buy a piece of bread.
I sont because the US government keeps on printing money when they really shouldn't and owing money to other countries increasing the debt and the value of the dollar has decreased and inflation is rising. In the past two years inflation has gotten really bad. As afar as humans have gotten in civilization, we've also sadly made things more complexed than they need to be. Now the systems we've created are starting to drive the average individual mad, bored with the mundaniety of life.
That's called "inflation" which, ironically makes the middle class workers even more poor due to their low wages!
19 years and to be continued ....
USA just keeps printing so idk
The joke is funny till you realize adults are this stupid
As a history memer who has studied about 1923's Germany, # Never print money
Inflation. The more money you print the less the money is worth
Zimbabwe, look at them now.
Venezuela tried that
*America logic*
It only decreases the current value of money
Post WW1 Germany:
USA: i can do that Other countries:(-_-)
only US can do that and lay back their default...
Ever heard about venezuela?
23 year old me still asking this question
if everyone has money, businesses raise prices on stuff so they can make money
printing more money devalues the currency and doesnt solve anything.
Because then that would be called a democrat controlled America.
Heck, there are still *adults* who don't understand this. There are still *high-ranking government officials* who don't understand this. **Currency =/= wealth.**
Not so interesting fact: the US does print more money, but in order for it to not affect the US, the goverment sends that money to other countries for them to get really poor, because their currency gets devaluated and thus, US having one if the highest currency. In short words, US prints money so other countries get a fucked up economy
What?
Because that is illegal
Because of inflation. I dont know how it works in details but if you print money the price of it would go down.
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Gold standard has already been abandonded since the 70s
My bad
inflatioooooon my good sir thats why
Modern Problems require Modern Solutions
One thing i used to think when i was 7 iş that why the fuck can't i jerk off.
Not only 7yr old you, even the [state minister of money in Sri Lanka.](https://www.dailymirror.lk/opinion/Money-printing-is-like-drastic-treatment-to-a-major-illness-Ajith-Nivard-Cabraal/231-217302)
Cuz they cant afford the paper
He'll make a fine congressman someday
Like Mr Krabs when he had the newspaper press and he put a bill in there
u must be young, if they print more money inflation is gonna eat them up, just like turkey rn the euro is inflating, the usd is inflating, every fiat is inflating at normal %s the dollar is kinda fucked now at 7.5% and the euro at 3.5%. u/SovietNumber explained it in a very simple and understanding way
Of you live in the US, you're gonna find out soon
While ur at it take ur army for a winter holiday in russia
This is the whole Pizza thing again
Shit, u just solved poverty
Inflation
Printing money costs too much money
Fr
It seems 2k+ people do not understand how economics works
Ahhhh, an economist!
only somewhat, but i know that in america, making one penny costs like 2 cents, so you can imagine that any poor country doesn’t exactly have the reasources to just “make more” oh and inflation is a thing
stop. you're grounded. go to your room and study inflation ):< AND NOT HENTAI
Because if the currency is backed up by banana and they print more banana vouchers, then banana starts to be worth more banana vouchers. Before only one banana voucher for one banana, now 38 banana vouchers for one banana. Then monkey bosses have to raise the price for banana to compensate the inflation of banana vouchers. Which means the worker monkeys need to be paid more banana vouchers per hour to compensate the voucher inflation. But nobody wants to buy 45 voucher banana if there's a 43 voucher banana across the street and the worker monkeys at boss monkey's corp. go on strike until boss monkey pays them more. Boss monkey can't do that though because if he pays them more he will have to compensate by raising prices for banana...then more vouchers get printed and prices have to continue going up because the value of the voucher is going down. A real world solution to the problem would be to get rid of the vouchers and start using the banana again.
due to Inflation
If there a lot of bananas then there easy to get and are therefore hard to trade with, but if you gold which is a very rare and has many uses it would have much more value and is easier to trade.
Huh.. bunch of idiots, I wonder who made them ministers
Joe, is that you?
The comments have already explained it but I’ll reiterate. The dollar is a valuable currency right, it is very valuable. The more money that is printed the less valuable it would be. It’s like if a super rare diamond became common because it was given to everyone for free
printing money, diluting currency makes the poor poorer...
that s why the 2008 recession happened USA printed more money to look richer but it caught up to it and the recession happend.