> Could you at least explain the logic that you believe implies this would occur with such certainty?
Because we haven’t actually created anything. Supply is the same, demand is WAY up.
Because we haven’t actually created anything. Supply is the same, demand is WAY up.
As long as we’re in a deficit, spending for this program would directly increase the money supply. Of course there are other factors like velocity of money and elasticity of good/services but at the end of the day we’re increasing the amount of money (aka cash + credit) with no change to supply AND we’re going into debt to do it.