You should really go and spend some time learning about the current monetary and fiscal systems from places other than Bitcoin subreddits.
The claim that “Purchasing power cannot be printed, despite what MMT claims real wealth has to be produced using real resources” is trivially falsifiable. The M2 money supply is 15X what it was in the 1970s but inflation caused the value to drop to 1/7th. That means net new buying power was in fact created - doubled even. The reason is you have too simplistic an understanding of money. Velocity of money matters.
There’s actually a term for excess value created through the addition of new money into the supply which eludes me right now.
> Either way, canadians are paying those $2000 back.
You have way too simplistic a take on the current financial system. Money is a social construct.
> The inflation metrics do not represent real inflation and even the FED admitted it, nor do they capture the wealth inequality even if they did.
lol, inflation is defined in terms of a specific basket of goods and services. If they want to redefine the baskets that’s fine but there’s no such thing as real inflation and fake inflation any more than there’s real math and fake math. If you want, talking about quality of life, standard of living, all that — that’s a much more interesting topic and again 100% social policy not monetary.
> Such a well managed economy right?
Yep! Well managed money supply. Well managed economy, I’m not sure Id go that far but they are two different things.
> You, the one that claims having a printing press and growing gdp faster than inflation means governments will outrun debts. Don’t shill magic beans.
You’ve hopelessly entangled a temporary medium of exchange and a long-term store of value in your brain. This has confused your understanding of economics. Spend less time in Bitcoin subreddits.
Growing gdp faster than debt does allow you never to pay it off, this principal is one that extends from personal finance. If you have an interest only loan all you ever need to pay is the interest. If the growth in the loan interest remains lower than the growth in your income (or inflation) it’s not in your interest to pay back that loan. Doing so increases opportunity cost. You get that right?
I could pay off my whole mortgage today but I won’t. Because I can do more with that money, and expect a better return than mortgage interest minus inflation. So, I refinanced. Thanks to inflation and tax deductions, my real interest rate is almost 0%.