I am a Financial Advisor. We provide mortgages as part of our business. Central Banks printing trillions is s fact and I understand what Tonia is saying below. But in my limited experience operating in the Irish market a very large proportion of the CB “interest free” cash never reached consumers. It was hoarded and guarded by commercial and retail banks seeking to rebuild their crushed capital bases from the 2008 financial crash. From my experience there was never an ordinary consumer credit bubble this time around. I believe that the energy crisis exacerbated the pandemic supply line crisis and the relatively modest amount of ordinary consumer savings all went chasing limited goods and services as soon as the pandemic restrictions were removed. I believe consumers will be a lot more prudent of their remaining modest cash savings in the short / medium term and IF the authorities can resolve the energy crisis in the short term then inflation is not truly imbedded in the world economy and will drop back quickly in the short term.
Hey lads. Love the show. GRMA. I read Stephanie Kelton’s book THE DEFICIT MYTH on recommendation from another podcast. I have a basic understanding of finance and money, but couldn’t in my mind square the circle of how could money being continually added to the money supply not cause inflation. I thought I just didn’t get it, but the MMT people have seemingly disappeared from view in the last couple of years. Would it be fair to say that perhaps I wasn’t the person who didn’t get it?🤷♂️😀
I am a Financial Advisor. We provide mortgages as part of our business. Central Banks printing trillions is s fact and I understand what Tonia is saying below. But in my limited experience operating in the Irish market a very large proportion of the CB “interest free” cash never reached consumers. It was hoarded and guarded by commercial and retail banks seeking to rebuild their crushed capital bases from the 2008 financial crash. From my experience there was never an ordinary consumer credit bubble this time around. I believe that the energy crisis exacerbated the pandemic supply line crisis and the relatively modest amount of ordinary consumer savings all went chasing limited goods and services as soon as the pandemic restrictions were removed. I believe consumers will be a lot more prudent of their remaining modest cash savings in the short / medium term and IF the authorities can resolve the energy crisis in the short term then inflation is not truly imbedded in the world economy and will drop back quickly in the short term.
Hey lads. Love the show. GRMA. I read Stephanie Kelton’s book THE DEFICIT MYTH on recommendation from another podcast. I have a basic understanding of finance and money, but couldn’t in my mind square the circle of how could money being continually added to the money supply not cause inflation. I thought I just didn’t get it, but the MMT people have seemingly disappeared from view in the last couple of years. Would it be fair to say that perhaps I wasn’t the person who didn’t get it?🤷♂️😀