Monday, March 16, 2020

Govt pension & Subsidy effect

You asked Bill if there had been a "give you cash program" in the US. He said no. But I respectfully differ. I received (and I think everyone else did) a check for 600 USD,, I think that was 04 or 06 (thereabouts). What is the effect? Well, if you go shopping, it creates demand and thus raises prices. If you don't shop and deposit it instead, that allows the banks to create more based on there reserves- effectively diluting your purch.power. Damned if you do, damned if you don't. They've got you either way.

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