04-15-2020, 08:48 AM
(04-15-2020, 03:58 AM)Isoko Wrote: You talk about programmes to help people. Big question? Where is the money going to come from? You can keep printing all you want but eventually that dollar note is going to become worthless. Russia and China are going to try to get the dollar replaced as the world reserve currency in 10 years and when that happens, America is pretty much finished. More than likely there will be a default.
Your criticism is valid, but there will not be a default. Rather, if Eric has his way, more and more money will be chasing after the same amount of goods, which will ultimately end with inflation.
Quote:As for Russia, actually Russia is playing the game correctly. The only reason people are protesting is down to they want more money. That's it. If Putin puts more money into the system, the people will be content with Putinism. No one per se actually is against Putinism, just they want more cash. Which is usually the case for Russia. Social agendas does not take a priority.
But here, the same is true. Printing money without fixing the economy just results in inflation. For Russia to do better, they need to fix their markets. As long as the economy is controlled by oligarchs, they will simply arrange to extract more from the people so they can increase their own consumption. Russia needs structural changes to improve investment and productivity to resolve this issue.