There are tens of trillions in bank deposits and cash in the US alone. "Someone" is holding every dollar at all times, so every dollar created is debasing someone's savings. Most just don't realize it.
But the worst debasement isn't savings, it's the lag in wages keeping up with prices. Every wage earner gets debased through that, and for a non-trivial amount.
Hyperinflation happens when wage earners finally catch on, and proactively demand wage increases higher and faster than price increases. That's what happened in Germany and Austria in the 1920s. The bougie "elites" were aghast at the wages demanded by their domestic servants, while their own "risk-free investment" in government bonds had evaporated to essentially zero.
That's the dreaded "wage-price spiral" the Fed has been freaking out about since 2021.
f0xr
npub1h3…uwlmn
2024-06-19 07:36:02
in reply to nevent1q…lsk7
Author Public Key
npub1h3kv6yar972dxetymty0t936p45utq7fj6p5rw7ly79jrafsnrjqvuwlmnPublished at
2024-06-19 07:36:02Event JSON
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