Not BE Reread, yet it IS! (isn't it?)

[David Morris]

Joseph,
In judging the effects of qualitative easing and the relative value of our
currency, let’s ask the following question:

*Does our national GDP have any relationship to the value of our currency?*


The US economy is running about as hot as it can
“As long as we're on the subject of the economy, it's worth noting that the
third-quarter GDP number released a couple of weeks ago shows that the
economy is running very close to its potential. [see graph in article]. This
shows GDP as a percentage of potential GDP. As you can see, the economy
never surpasses its potential for long without sliding into recession (gray
bars). Sometimes it happens quickly, sometime it takes a while, but it
always happens.¹

In February of 2020 we were already running above potential and ready to
drop into recession when the pandemic hit. We've now nearly regained that
level, running at 99.7% of potential.  This means that the economy is
running about as hot as it can.

https://jabberwocking.com/the-us-economy-is-running-about-as-hot-as-it-can/

Relationship Between GDP and the Money Supply
In general, when the GDP growth rate shows rising economic productivity,
the value of money in circulation increases. This is because each unit of
currency can subsequently be exchanged for more valuable goods and
services. Economic growth tends to have a natural deflationary effect, even
if the supply of money does not shrink.

https://www.investopedia.com/ask/answers/070615/what-correlation-between-money-supply-and-gdp.asp


On Fri, Nov 12, 2021 at 8:54 AM Joseph Tracy <brook7 at sover.net> wrote:

> Maybe not price gouging but when goverment pumps tons of imaginary money
> into the economy it starts to lose value. Quantitative Easing was the
> phrase.
>
> > On Nov 12, 2021, at 7:12 AM, Mark Kohut <mark.kohut at gmail.com> wrote:
> >
> > Love in the Time of Web3, Pynchon is smiling when he saw that....
> >
> >
> > <https://twitter.com/mattyglesias>
> > Matthew Yglesias
> > @mattyglesias
> > <https://twitter.com/mattyglesias>
> > ·
> > 12m <https://twitter.com/mattyglesias/status/1459126609521295389>
> > Agree with Robinson — you can’t take the politics out of politics! Biden
> > should also investigate price-gouging and anti-competitive behavior by
> > retail gas stations and have the FTC ask if cartel-like behavior by oil
> > company shareholders is restraining supply.
> > --
> > Pynchon-L: https://waste.org/mailman/listinfo/pynchon-l
>
>
>
> --
> Pynchon-L: https://waste.org/mailman/listinfo/pynchon-l
>