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might check out some pawn shops for a used set of decent American made tools

Perhaps some educated individual could tell me how printing money causes inflation.

I think its more than simply a case of "too many dollars chasing too few goods".

Massive amounts of money creation has been going on since the year 2000 when the Federal Reserve decided it was going intervene in the economy at the first hint of deflation. Remember QE? That created big time inflation in stock prices but the inflation rate remained fairly stable, or maybe I should say gradual in the real world until Covid and the Russia Ukraine fiasco. Was a tipping point finally hit or is there more?

Biden has let in several million illegals, more than the population of several states. That is a huge additional demand for goods and services.

Biden's energy policy/green new deal put upward pressure on energy prices which led to the war in Ukraine because it dropped billions into Putin's lap with which he could fund his war. His mind blowing incompetence running the Afghan withdrawal was the cherry on top telling Putin "its now or never". This put further upward pressure on energy and food prices because Ukraine is a huge producer of fertilizer and food for the world. Energy is an input cost in well, everything, and business will pass it along to the consumer if they can.

You can call it "greed" if you want but the job of a business person or corporation is to get the most money they can for whatever it is they do. I used to have a boss years ago who said that the perfect pricing model is when your customer hears the price he says "holy shiit" but still pays it. I think during the covid shortages business learned that the consumer will say "holy shiit" but will pay more. Right now, that is what the American consumer is doing. You have to eat but you don't have to pay $80,000 for fancy pickups or a grand for a cell phone, but people are doing it. Ditto with other "discretionary purchases".

Most of this is funded by debt and at some point the consumer is going to tap out which should ease prices but wait and see, the govt will step in with rate cuts and "stimulus" because a recession is viewed as a tragedy by politicians who have created a game where whoever happens to be in power when one happens gets blamed for it. But recessions are a natural part of free markets, a self correcting mechanism which puts a damper on inflation, and really is the cure for it. But we don't have a free market, not even close.

might check out some pawn shops for a used set of decent American made tools

might check out some pawn shops for a used set of decent American made tools

Perhaps some educated individual could tell me how printing money causes inflation.

btt