Why is $4T deficit a problem? The government issues its own currency, no?

Also, the government did not ‘vastly increase’ the money supply. Outstanding deposits in the economy are probably lower right now due to lower economic activity. What the government did was try to ‘replace’ lost dollars. The Fed increased the amount of reserves in the banking system. This is not the ‘money supply’, if you’re talking about the deposits in your bank account.

Corporate accountant and former auditor with degrees in philosophy and accounting.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store