Printing Money For UBI

[DBTrek]

No.

It's in the hands of net exporters like China.

There too.
/shrug

Point being, $60 trillion didn’t enter the economy over four decades and quietly make a splash with no one noticing and no perceivable impact.

[Speaker to Animals]

A trade deficit results in your money supply flowing to your exporters.

Pretty much all of it is in the hands of China and others. To a lesser degree in the hands of banks who profit from the low interbank loan rate. That's where it goes.

[DBTrek]

Banks lend to businesses, businesses hire people, people buy goods, goods suppliers pay employees to make more, etc, etc.

The money doesn’t reach a bank and stop. That’s the exact opposite of a fractional reserve banking system.

[Speaker to Animals]

You do not understand the problem. A massive trade deficit means you are exporting your money supply in exchange for foreign goods.

So you have to keep printing money to keep your domestic money supply at the same size.

But that can come back to haunt you when those net exporters flood that currency back into your market.

[DBTrek]

That’s true, but exports govern only the trading of physical goods, and America has a strong service economy. We don’t ship Amazon, Facebook, or Microsoft cloud services. We don’t export our various financial sector services. All these numbers (comprising a considerable segment of our economy) aren’t reflected in “trade deficit”.

So the trade deficit stats only capture a portion of what’s happening in our economy.

[Martin Hash]

I know where it's not: in the hands of 70% of Americans who have no Net Worth outside of "retirement," and that's gone, they just don't know it yet.

[Martin Hash]

The newly printed money exists almost entirely in the U.S. There's not that much in foreign banks that hold accounts in U.S. dollars, maybe $half-trillion. The 1%ers have it.

[Speaker to Animals]

About 57 billion dollars were exported out of America last year because of the trade deficit.

Last year, there was an increase of about 3.8 billion dollars in the money supply.

It's all going overseas right now.

The worst part of it is that what money is coming back is generally coming back in form of debt purchases.

[Martin Hash]

The worst part of it is that what money is coming back is generally coming back in form of debt purchases.

That's how it all comes back. (Didn't you listen to my podcast?) It's a double death-blow: first a U.S. company spends a bunch of $dollars in China then China buys Treasuries with it. The Outsourcers get all the profit at taxpayers expense, and China grows. Cheap goods from China AIN'T cheap.

[DBTrek]

Well, we all agree that a trade deficit to China paired with their American bond and debt holding is not good for future Americans who will be losing those maturing rewards to China.

That shit is bad.
We just disagree over whether it’s economy-ending-give-us-all-UBI bad, or one bad segment of a multi-segmented American economy.