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re: How does the U.S. control the value of dollar by soaking up drug trade money?
Posted on 12/13/16 at 10:21 am to mizzoukills
Posted on 12/13/16 at 10:21 am to mizzoukills
quote:
I get that it's a great way to soak up excess U.S. dollars...but how does that translate to controlling the value of the dollar?
By controlling M1 supply. Eliminating these dollars from circulation could prevent excessive inflation.
2
Posted on 12/13/16 at 10:25 am to HempHead
quote:
By controlling M1 supply. Eliminating these dollars from circulation could prevent excessive inflation.
so are they implying that the failed War on Drugs actually has another purpose altogether, and that purpose is to soak up U.S. dollars to control the value of the dollar?
If so, does that perhaps partly explain why the Treasury can print money with little blowback? Just an offset of what we soak up from the drug trade?
This post was edited on 12/13/16 at 10:35 am
Posted on 12/13/16 at 10:35 am to HempHead
quote:Buying something, including drugs, does not remove dollars from circulation.
Eliminating these dollars from circulation
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