davel ,
@davel@lemmy.ml avatar

Very Serious People complain that the money printer go brrr money is going to create inflation. And it actually has created inflation, specifically: asset price inflation, and even more specifically: price inflation of the assets owned by those same Very Serious People.

Michael Hudson & Radhika Desai: Inflation’s Drivers

What has really been inflated, since 2008, has not been consumer prices, but asset prices — [that is,] real estate prices, stocks and bond prices, things that the 1% hold. Wealth has been inflated much more than goods and services. [This is especially true] for real estate.

This debt has been inflated not by government debt, not by government deficits, but by the Federal Reserve creating a $9 trillion subsidy to the banks to support real estate prices, and hence the value of bank-held mortgages and stock and bond prices.

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