Inflation & The Money Printers: How Much is Too Much?
In some kind of perverse world, you could be forgiven for thinking:
Inflation & The Money Printers is some tacky band from the 80s and
The government is throwing us a line: saving us by giving out so much cash (AUD $30B for civilians to be exact)
Every family ‘affected by Covid-19’ is paid extra money, and we in Australia get apparent access to $10K of our superannuation, now and in the new financial year after June 30, 2020.
You could be forgiven for genuinely thinking this will help. In the short-term it will. What about the longer term? Will this cause inflation? How much inflation are we willing to accept?
Oh and by the way, that 30B is only a tiny portion of the total package, most of which is destined for the bottomless pockets of banks and big business:
The government has announced a second major economic rescue package worth $66bn, on top of an initial $17.6bn package and more than $100bn in emergency banking measures to prevent against a credit freeze. Reports: The Guardian
What Are The Real Costs To Us For This CV19 Party Bag Hand-Out?
I don’t mean to be glib here, and I don’t mean to say we people don’t need help. But did you ever stop and wonder where all that money is coming from?
Twitter is littered with tales of doom about how the Mar 24th 2020, US bailout of $6T (6 trillion) is going to play out in their economy (AKA House of Cards). Most of us have no real concept of how much money that 6 trillion actually amounts to:
6,000,000,000,000 = six trillion, which, measured in seconds in time = 189, 276 years!