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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: bruwin who wrote (75714)5/25/2024 8:17:39 PM
From: Spekulatius  Respond to of 78958
 
How the government creates money is pretty simple. The expenses exceeding the tax income are financed for in treasury bonds which are directly exchanged in newly printed $ to pay for the expenses.
Hence the 6% + deficit essentially means that out GDP would be 6% less, if it were not for the deficit financed spending. It also means the deficit spending equals the increase in money supply. This also explains why inflation is almost always a result of public spending exceeding tax income.

Inflation is more or less a political ( spending ) problem, at least if it persist longer term.

Edit just reading bruwins response and he is explaining it from a different angle but basically saying the same thing.



To: bruwin who wrote (75714)6/14/2024 9:33:04 PM
From: Ccube  Read Replies (1) | Respond to of 78958
 
youtu.be
Michael Howell about the liquidity.
Interesting take.... He thinks markets will keep going higher because of liquidity injection by the central banks world wide. Till late 2025 .....

He also talks about the debts around the world. actually makes perfect sense if you think about how money flows in the financial world vs real world (economy).
Yield controls (Japan) thinks USA will have to do the same fairly soon. So doesn't think Bonds are a good investment.

EAF so what happened to this stock/company? is it worth taking a shot at $1.08 ?
I vaguely remember it was a graphite company? someone posted long time ago.