anyone trying to understand the economic future AND the role of bidens trillion dollar stimulus plan should listen to the story on MMT because it points out money only benefits the system as a whole if those at the controls understand there is a “speed limit”
basically if too much money floods the system which can’t be absorbed, there will be inflation!!!
one thing not mentioned in the planet money story by any of the left leaning economists who mentioned detractors point out the weimar republic, greece Venezuela or Zimbabwe (which are systems that all experienced hyperinflation), is the concept of triffin’s dilemma
long story short about bidens trillion dollar stimulus is the USA can indeed create money out of thin air so to speak, simply because after WW II at bretton woods there was an agreement that all global contracts are denominated in dollars,…
the economic idea of triffin’s dilemma comes into play because it points out all global currencies eventually fall from grace,… at one time the roman denarius (ruled the world),… before the dollar became the global standard, the british pound was where it was at,… and some day the dollar will fall
point being if the dollar is displaced by the Chinese Yuan, then life in the USA will become much more difficult
the reason I point out this glum economic possibility is because there are news reports that don’t get much notice because the pandemic is dominating headlines
for those not looking at the numbers,…
[quote] San Diego scrambling to close $154M deficit, sharply up from $86M estimate in November
…The spike is the result of a nearly $50 million increase in San Diego’s annual pension payment
[quote] San Diego Faces Budget Cliff Without More Federal Aid
As the COVID-19 pandemic continues to choke the region’s economy, San Diego city officials are preparing to cut funding for parks, libraries, arts organizations, public safety and infrastructure if the federal government does not provide additional aid.
Mayor Todd Gloria said earlier this month he is expecting a deficit in excess of $150 million. He has since directed department leaders to come up with cuts of between 2% and 8% as he prepares to present a balanced budget proposal by an April 15 deadline.
…President Joe Biden has proposed $350 billion in aid to state and local governments as part of a $1.9 trillion relief package. That would dwarf the $150 billion allocated to states and cities in the CARES Act.
