by TrueGritttt
Here is how inflation works, and why it doesnt hurt the economy or wall street
1.) Govt spends money it doesnt have. It does this by printing the defecit money, and promising to “pay it back” someday into the economy
2.) the Govt is the Govt and nobody can force them to pay it back
3.) since they just devalued the currency, and never “pay it back”, inflation soars, costing all Americans money (especially the poor who cant afford it)
4.) the govt basically just got to spend money it didnt have, by making the economy pay for it
It is basically a “tax” when they print money. And since it will never come back to bite the govt, it doesnt have any longterm damage aside from screwing the poor (no shocker there)
Also: The worlds currencies are mostly backed by the US Dollar, so thereby its too big to fail. Other countries have no ability to force the US Govt to stop the money printer. Theoretically the US govt is thereby also taxing other nations