Republicans are lying about Inflation due to “Printing Money”
- McQueen
- Sep 27, 2024
- 3 min read
Republicans are lying about Debt Inflation due to “Printing Money”
JustOnePage.org: summaries debunking big lies. Version: 09272024.1
The U.S. is not just “Printing Money” (Cash) like pre-war Germany and Venezuela. This is a Republican lie and fear mongering. COVID and war disruptions caused the recent high inflation! We are back down to below 3% inflation and have recovered from most disruptions except war and its high gas prices.
This proves that;
1: spending to meet budget demands,
2: stimulus spending targeting investments, and
3: heavy debt, do NOT cause inflation.
This is the way we have been running the country for 60 years, and in the 40 years since the 1980s when the debt really took off due to Reagan’s Rich Tax Cuts.
Yes, we are printing U.S. Treasury Bonds and going into debt! This helps our “Make America Great Again” or MAGA Bank bigger and stronger since everyone in the world wants to give their extra money to “America First!” because they might lose money if they invest most other places. No excess “cash money” is being circulated because most of the new debt taken on is being used to pay interest on older debt. We are only expanding our “MAGA” Bank and creating a great beautiful “Wall” of debt and “Making (30%) Foreigners pay for it”.
30% of the debt is bought by US citizens
40% of the debt is bought by Governmental Institutions and the Fed.
30% of the debt is bought by foreign investors: 4% by Japan (largest investor), 3% by China.
Don’t worry, because we can handle the payments:
Only 13% of the “yearly US budget” goes to pay the Debt. Compare that to an average mortgage or rental payment that is usually 33% of someone’s annual salary (personal GDP). Another way to look at it: In the last 20 years, Yearly “Debt Payment/GDP Ratio” was about 2.5% due to low interest rates.
Historically the percentage of GDP that we pay our debt (mostly interest) with has not drastically changed in 40 years. Before 2000, it was about 4.5% and as high at 5% in the 1980s. There is no chance of default unless Republicans ruin the MAGA Bank, by not raising the debt ceiling and refusing to let Congress tax the rich to exceed a balanced budget like Clinton did. Regan drastically cut taxes of the rich which started the whole explosion of debt in the first place.
So, our Total Debt is about 120% (was 130% in 2021) of our yearly GDP, but the payments are only 2.5% of GDP.
US inflation dropped to below 3%.
Compare that to Japan’s Very High Debt to GDP ratio of 260% with low 3% Inflation … and France’s ratio is 110% with only 2.5% inflation.
Having high debt clearly does NOT lead to inflation.
Note that 1970’s inflation was caused by war and the gas crisis.
There are 3 types of debt spending:
1: Budget Shortfall Spending to programs already planned for,
2: Stimulus Spending through credits to programs that pay for work already demanded for and any inflation caused meets the speed of subsequent GDP growth.
3: New Debt is new debt to pay for older debt, and that is not circulated in the traditional money supply.
It is simply only the crediting of accounts to sell more America First Bonds to increase the size of the “Make America Great Again” Bank!
Yorumlar