[rdm70]

OK. So what are the limiting principles for money creation? When does it shift from being a good thing to too much of a good thing?

This seems to be completely absent from the public debate.

[dkjaudyeqooe]

That's entirely dependent on the economic situation. The same question can be asked of interest rates.

And the answer is when you get bad outcomes. You have to assume the Fed knows what it is doing, but most people seem to think they know better.

[chrisseaton]

> OK. So what are the limiting principles for money creation?

If you gave everyone a million dollars would they all be able to buy a million dollar home?

No? Why do you think not?

Because the price of million dollar homes would go up because everyone would now be able to bid for them.

You can literally give everyone a million dollars, but you won't be giving them a million dollars of purchasing power relative to before you gave them the money.

[missedthecue]

That's the point the parent is making, except he thinks it doesn't take as much as a million dollars for that effect to take place. His question is why is $8 trillion of money printing since last March A-OK when $100 trillion isnt?

Is the line $8 trillion? $25T? $50T?

[OscarCunningham]

The Fed has an inflation target of 2%. That is precisely when printing money shifts from being a good thing to a bad thing.