Devaluation of the dollar has been going on for a long time. They badgered GWBush about it and his excuse was that foreign countries could afford to buy our goods. It’s what nations do just before they collapse. Germany after WWI took a wheelbarrow full of money for a loaf of bread.
Inflation is too much of money chasing too few goods. Flood the market with free money and presto Inflation. Of course this was covered in high school economics.
When the government puts massive amounts of money in the hands of Americans, then shuts down the economy it creates a supply and demand distortion. Add in near zero interest rates. Most money is created by bank lending.
The US Federal Reserve Banknotes were created by the non governmental Jueish owned FEDERAL RESERVE and were loaned to our US Government to pay for the Govt and Military and Welfare and Food Stamps for the Government to give to worthless low life dimocraps in order to pay them to vote for dimocraps and we were saddled with the debt and interest payments on it.
The Jueish Federal Reserve Bank member printed the money and gave it to the money center banks owned by the Jueish Brothers and buds.
To stimulate the economy the Jueish Banks bought stocks on the Jueish owned and controlled stock markets by buying the stocks of companies owned by more jues.
It's lucrative work if you can get it.
The people JESUS CHRIST whipped out of the Holy Temple were money changers (Banksters). Nowadays we call them bankers.
The Jueish company stock owners knew when to buy the stocks and when to sell them - because they all worked together. Its a Cabal.The jues who ran the Federal Reserve knew when to buy and sell stocks as did their buds who owned and controlled the companies and when the markets would move up or down. Rigged.
They made trillions off our debt. And we got more and more in debt.
Just as they took over Germany and got to the point they owned and controlled everything they got that way here.
This pissed Trump off and now they will pay.
Last edited by jaguartx; 04/21/24.
Ecc 10:2 The heart of the wise inclines to the right, but that of a fool to the left.
A Nation which leaves God behind is soon left behind.
"The Lord never asked anyone to be a tax collector, lowyer, or Redskins fan".
The US Federal Reserve Banknotes were created by the non governmental Jueish owned FEDERAL RESERVE and were loaned to our US Government to pay for the Govt and Military and Welfare and Food Stamps for the Government to give to worthless low life dimocraps in order to pay them to vote for dimocraps and we were saddled with the debt and interest payments on it.
The Jueish Federal Reserve Bank member printed the money and gave it to the money center banks owned by the Jueish Brothers and buds.
To stimulate the economy the Jueish Banks bought stocks on the Jueish owned and controlled stock markets by buying the stocks of companies owned by more jues.
It's lucrative work if you can get it.
The people JESUS CHRIST whipped out of the Holy Temple were money changers (Banksters). Nowadays we call them bankers.
The Jueish company stock owners knew when to buy the stocks and when to sell them - because they all worked together. Its a Cabal.The jues who ran the Federal Reserve knew when to buy and sell stocks as did their buds who owned and controlled the companies and when the markets would move up or down. Rigged.
They made trillions off our debt. And we got more and more in debt.
Just as they took over Germany and got to the point they owned and controlled everything they got that way here.
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.
Last edited by RJY66; 04/22/24.
"Men must be governed by God or they will be ruled by tyrants". --- William Penn
If the government printed a warehouse full of money and it doesn't get to the people prices don't go up.
But it does go to the people. It might not go to you but it definitely goes out.
I didn't get a penny directly off the printing presses during the great COVID money printings but many people did. Many more got them written to their businesses, and still more got them as payment for things they sold governments. In the great housing crisis money printings most of it first went to a handful of bankers and auto makers but they sent it along to their creditors and workers and suppliers and all that, all of whom are just groups of people.
Perhaps some educated individual could tell me how printing money causes inflation.
Look up fiat money and fractional reserve banking.
The US has been producing money (QE) out of thin air for a long time. Really went crazy in 2008 and not slowed since.
Artificially low interest rates are great for banks selling debt. Not so much for savers, forces them to send money into the wall street casinos or watch their cash holdings dwindle at the real inflation rate.
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.
I pretty much agree with you. The oh [bleep] pricing comes back and bites people though when times get tough.
Think of it like a see saw on the playground. on one side you have all of the dollars in circulation. On the other side is everything of value, goods and services that have real value. They are balancing each other out. When money is printed and added to circulation then it naturally tries to balance. So everything of real value over time rises in dollar value to match the.dollars in circulation. The dollars are devalued because it takes more of them to buy something with real value than it did before the new dollars were added. What it means to us when they added 20% more dollars to the economy during the covid scam, is the 1000 dollars we had in our savings account. Only buys 800 dollars worth of stuff now. The SOBs stole 20% of our work and savings.
Perhaps some educated individual could tell me how printing money causes inflation.
Think of it like this. You've made a pot of nutritious soup for your family of five, loaded with calories and nutrients, lots of meat and vegetables.
Now five new people drop by and ask to join you for dinner, but you only have enough for your family to have one bowl each. Solution: You double the soup's volume by the addition of water from the sink's faucet so that you can serve ten bowls of soup instead of only five. But now each bowl is only half as nutritious and calorie dense as it would have been before.
Money printing is analogous to doubling the volume of the soup by the addition of water. Each bowl (although containing just as much soup) is now only worth half what it was before in nutrition value.
Printing dollars is like pouring more water into a pot of soup. You’re not adding anymore nutrients just watering down the soup. As the soup gets watered down it takes more soup to get the same nutrients (value) or it takes more dollars to get the same thing.
Printing dollars is like pouring more water into a pot of soup. You’re not adding anymore nutrients just watering down the soup. As the soup gets watered down it takes more soup to get the same nutrients (value) or it takes more dollars to get the same thing.
Perhaps some educated individual could tell me how printing money causes inflation.
Think of it like this. You've made a pot of nutritious soup for your family of five, loaded with calories and nutrients, lots of meat and vegetables.
Now five new people drop by and ask to join you for dinner, but you only have enough for your family to have one bowl each. Solution: You double the soup's volume by the addition of water from the sink's faucet so that you can serve ten bowls of soup instead of only five. But now each bowl is only half as nutritious and calorie dense as it would have been before.
Money printing is analogous to doubling the volume of the soup by the addition of water. Each bowl (although containing just as much soup) is now only worth half what it was before.
I didn't read this before I posted. But this is the same as what I learned in Econ 101.
Printing dollars is like pouring more water into a pot of soup. You’re not adding anymore nutrients just watering down the soup. As the soup gets watered down it takes more soup to get the same nutrients (value) or it takes more dollars to get the same thing.
All good and fundamental elements, however to put it simply , inflation is simply printing more money, without any backing(gold standard) therefore reducing the value of the currency in circulation.
All good and fundamental elements, however to put it simply , inflation is simply printing more money, without any backing(gold standard) therefore reducing the value of the currency in circulation.
Fiat Federal Reserve Notes actually do have a base value, and that's created by the fact that you must pay your taxes with them, or be arrested, which creates demand (which is why the 16th Amendment was ratified at the same time the Federal Reserve System was created). However, each time the number of notes in existence is increased, each individual note decreases in purchasing power proportionally.
The degree to which purchasing power per individual one-dollar note is decreased doesn't mean that that much purchasing power has disappeared, however. That lost degree of purchasing power per one-dollar FRN merely transfers from the dollars in existence previously into the new dollars created, but the same total worth of all dollars together remains the same.
Inflation is too much of money chasing too few goods. Flood the market with free money and presto Inflation. Of course this was covered in high school economics.
Common red herring. That is merely supply and demand cycles that the market accommodates and corrects. Inflation is the intentional debasement of the currency by , literally, counterfeiting new dollars out of nothing! Extra units dilute the value of everything traded I can’t trace how it works at street level myself. But prices know to rise somehow. Debt created has to sold. China, Saudi Arabia don’t buy. The FED “Buys” It’s real simple but complicated on purpose to legitimize slight of hand. Our critters know it’s destructive to our future. You would think.
Only backing of our currency is that of a full faith the federal gov’t will honor its debts. You obviously know there’ been no backing of the dollar since Nixon took us the last vestige of backing the so called silver standard.
The soup analogy is a a good one, but the image below clearly shows it isn't the soup that was watered down!
The soup (and the can with the red/white label) are essentially unchanged. Prices were relatively constant for 80 years but then wham, there was a drastic change that occurred in the early 70s. Hmmmm, what could that have been?
The irony is that current Economic Thinking discounts the "too much money chasing too little goods" theory. Theories like "new monetary theory" have been floated, but they do a pretty poor job explaining the Covidiocy inflation. In the Pre- era, inflation was limited because there was an unlimited reservoir of overseas labor ready to send another hammer to Home Depot the second one was sold.
My take is that inflation will take off when there is a limiting factor to production in the economy. In the '70's, that limiting factor was oil. During the Covidiocy, it was production (shut downs of factories and service establishments).
Today, for the first time in a long time, the limiting factor is labor. A combination of the Boomer generation retiring and re-shoring production has driven the labor supply down and the labor demand up. Presto, labor limitations are causing production limitations. Added are the birth rate bomb in China (and earlier, Japan). As a result of the labor shortage, restaurants are limiting hours, truck dealerships take 10 days before they can diagnose a truck, and P&G figures they can pass along their DEI driven increase in labor costs...... And we have inflation.
Next fun economic topic to discuss: what's the optimal level of inflation? (Hint: it's NOT 2%).
The soup analogy is a a good one, but the image below clearly shows it isn't the soup that was watered down!
The soup (and the can with the red/white label) are essentially unchanged. Prices were relatively constant for 80 years but then wham, there was a drastic change that occurred in the early 70s. Hmmmm, what could that have been?
Yes, the gold standard enforced spending discipline on the part of our government, because there had, at least, to be a substantial gold basis to the money in circulation, or no one would trust it. That system only broke down when a combination of perpetual foreign wars and the institution of socialist policies at home (Johnson's Great Society) forced our government to print far more dollars than it had gold to back it.
When other nations started catching on to this state of affairs, they figured the gold they had a right to by having accumulated US Dollars wasn't actually backed by gold, and started demanding their gold instead of the dollars.
This acted like a run on a bank, and Nixon pulled the rug out from under the entire gold standard, in order to keep our economic system from collapsing entirely, by simply defaulting on our obligation to back the dollars in circulation with gold.
For the first time, starting in 1971, the entire world found itself on a completely fiat system of currency, and we've seen the consequences as shown by your chart.
The irony is that current Economic Thinking discounts the "too much money chasing too little goods" theory. Theories like "new monetary theory" have been floated, but they do a pretty poor job explaining the Covidiocy inflation. In the Pre- era, inflation was limited because there was an unlimited reservoir of overseas labor ready to send another hammer to Home Depot the second one was sold.
My take is that inflation will take off when there is a limiting factor to production in the economy. In the '70's, that limiting factor was oil. During the Covidiocy, it was production (shut downs of factories and service establishments).
Today, for the first time in a long time, the limiting factor is labor. A combination of the Boomer generation retiring and re-shoring production has driven the labor supply down and the labor demand up. Presto, labor limitations are causing production limitations. Added are the birth rate bomb in China (and earlier, Japan). As a result of the labor shortage, restaurants are limiting hours, truck dealerships take 10 days before they can diagnose a truck, and P&G figures they can pass along their DEI driven increase in labor costs...... And we have inflation.
Next fun economic topic to discuss: what's the optimal level of inflation? (Hint: it's NOT 2%).
And plumbers can charge $200 an hour.
I have seen some of the really high priced electricians start to complain they don’t have enough work. They gouged the [bleep] out of people during and after COVID and now nobody will use them. I also can get a contractor in a few days compared to a few weeks or a month.
The irony is that current Economic Thinking discounts the "too much money chasing too little goods" theory. Theories like "new monetary theory" have been floated, but they do a pretty poor job explaining the Covidiocy inflation. In the Pre- era, inflation was limited because there was an unlimited reservoir of overseas labor ready to send another hammer to Home Depot the second one was sold.
My take is that inflation will take off when there is a limiting factor to production in the economy. In the '70's, that limiting factor was oil. During the Covidiocy, it was production (shut downs of factories and service establishments).
Today, for the first time in a long time, the limiting factor is labor. A combination of the Boomer generation retiring and re-shoring production has driven the labor supply down and the labor demand up. Presto, labor limitations are causing production limitations. Added are the birth rate bomb in China (and earlier, Japan). As a result of the labor shortage, restaurants are limiting hours, truck dealerships take 10 days before they can diagnose a truck, and P&G figures they can pass along their DEI driven increase in labor costs...... And we have inflation.
Next fun economic topic to discuss: what's the optimal level of inflation? (Hint: it's NOT 2%).
And plumbers can charge $200 an hour.
I have seen some of the really high priced electricians start to complain they don’t have enough work. They gouged the [bleep] out of people during and after COVID and now nobody will use them. I also can get a contractor in a few days compared to a few weeks or a month.
I'm starting to see that with contractors that don't realize how precarious their situation is right now. Bragging on how expensive the houses they built are per square foot, rather than trying to manage costs and schedules. There's a backlash building, and it may get quite interesting on how it's going to play out. People in general have a hard time adjusting wages / prices down. Many will go out of the business claiming "hard times" rather than deal with bad habits created in boom times.
The irony is that current Economic Thinking discounts the "too much money chasing too little goods" theory. Theories like "new monetary theory" have been floated, but they do a pretty poor job explaining the Covidiocy inflation. In the Pre- era, inflation was limited because there was an unlimited reservoir of overseas labor ready to send another hammer to Home Depot the second one was sold.
My take is that inflation will take off when there is a limiting factor to production in the economy. In the '70's, that limiting factor was oil. During the Covidiocy, it was production (shut downs of factories and service establishments).
Today, for the first time in a long time, the limiting factor is labor. A combination of the Boomer generation retiring and re-shoring production has driven the labor supply down and the labor demand up. Presto, labor limitations are causing production limitations. Added are the birth rate bomb in China (and earlier, Japan). As a result of the labor shortage, restaurants are limiting hours, truck dealerships take 10 days before they can diagnose a truck, and P&G figures they can pass along their DEI driven increase in labor costs...... And we have inflation.
Next fun economic topic to discuss: what's the optimal level of inflation? (Hint: it's NOT 2%).
And plumbers can charge $200 an hour.
I have seen some of the really high priced electricians start to complain they don’t have enough work. They gouged the [bleep] out of people during and after COVID and now nobody will use them. I also can get a contractor in a few days compared to a few weeks or a month.
I'm starting to see that with contractors that don't realize how precarious their situation is right now. Bragging on how expensive the houses they built are per square foot, rather than trying to manage costs and schedules. There's a backlash building, and it may get quite interesting on how it's going to play out. People in general have a hard time adjusting wages / prices down. Many will go out of the business claiming "hard times" rather than deal with bad habits created in boom times.
Seeing that exact same mentality play out in trucking.
Today's entry level kids can start at 15 to $20 an hour. That is enough for them to buy about 4 gallons of gas here in SE Oregon. As a kid fresh out of the service in 1970, I started at $1.25 an hour working in row crop fields. That was just enough for me to buy 4 gallons of fuel at about 30 cents a gallon.
Look at powder: As a kid, 3 or 4 bucks would get me lb. Now 60 or $70 (3 or 4 hours of labor) will get one a pound.
Similarly, my kid recently left Montana where I think minimum wage is about $10.30 for a move to Portland, Or where it's $16.00. Rent in Montana was about $500 a month and around $1200 in Portland. Being Portland, I think he took a step back.
The virus handouts put more money into circulation, so everyone was comfortable elevating their prices. Haven't noticed anyone lowering them at all.
Lots more $$$ around, but has anyone actually moved ahead?
I don’t mean to belabor the subject but most of post are all about the results, not the cause of inflation. Inflation is NOT greedy labor demanding higher wages, or greedy buisness demanding high prices for their products, or the inflated stock market, it’s pure and simple the devaluation of the dollar through inflating (printing more money) of the currency in circulation . One last comment, that I would think we can all agree on , Woodrow Wilson ‘s creation of the federal reserve system was the biggest Ponzi scheme ever foisted on the American people, including the graduated incometax. The tax, through legislation can be changed , control of our money’s value through the federal reserve(which by the way neither federal or reserve) has never changed, or for that matter the federal reserve has never even been fully audited. Incidently every congressional session bills have been drafted to audit the fed, they have never come up for a vote of the full house or senate, imagine that, who do you suppose is in control and what do they fear. How in hell could any sane society put private bankers in control of its nations currencies , that power was intended , by our founders , be held by congress, the people, through their elected representatives, and its value was to br tied to a standard value, originally gold. Those reserves are, were , store at Fort Knox, and low and behold Ft Knox , to my knowledge hasn’t been inventoried in decades. Image that!!!
money supply × velocity of money = price level × real GDP
Understand this equation and it's pretty simple.
When the pandemic started hitting, velocity of money dropped like a rock. The Fed increased the money supply to counteract that. Aggregate consumer demand was also falling so government spent more to counteract that. It actually worked pretty well, considering. (Yeah I know about government spending, the problem with Keynesian economics is that when the government never cuts back spending just keeps adding to it.)
But as I like to say, todays solutions are the seeds of tomorrows problems.
As we came out of the pandemic the velocity of money jumped up will all that money the Fed created still out there. Supply chain issues hamstrung Aggregate supply so GDP couldn't keep up, so since the equation requires both sided equal out, prices went up sharply... Inflation!
The Fed is cutting back on the money supply and the supply side of things is working itself out. Inflation has moderated to about 3.5%. Still too high but much better than it was.
Supply and Demand. It’s that simple. Inflation isn’t just a US problem, it’s a global problem. The problem with blaming it on the Federal Government printing money is the Fed has been printing money for years. and especially during the Great Recession. Why didn’t we have massive inflation then? It’s like saying cutting taxes always stimulates the economy because people have more money in their pocket. You can print all the money you want, but people have to spend that money to have inflation increase even a little bit. Current inflation has been caused by one single thing, a decrease in supply without an equal decrease in demand. Then, when Covid restrictions were lifted, there was a massive increase in demand without a massive increase in supply. Thus, inflation. Remember, China was shut down a LOT longer than us, and where do we get all that cheap chit Americans love so much? Yep, China! Once supply ramped back up, guess what happened to inflation? It started dropping relatively quickly. The Fed raised interest rates to help lower demand, but most economists say that did very little to actually lower demand. Now the issue is oil. The US is producing record amounts of oil, but European country’s are no longer counting on Russian oil, and OPEC+ countries just agreed to voluntarily continue their oil cuts, to keep oil prices inflated. Since the US doesn’t have a National Oil company, and all US oil is produced by corporations, US oil prices are set by the market. Right now, that’s what’s holding inflation over 3%, and not the US printing money.
World inflation began in earnest when the US cut its last ties to gold in 1971. The further we distance our currency from gold and silver (specie money), the worse inflation becomes, because doing so loosens the discipline specie-based money exerts over governments with regard to deficit spending.
The reason our money being inflated causes worldwide inflation is that we have been the world's reserve currency since the end of WWII (Bretton Woods). That currency was backed by gold till 1971, and when we defaulted on that obligation, we cut our currency's last ties to specie money.
The reason there has been a very large lag in the effects of inflation on prices in the US is that, due to being the world's reserve currency, we were always able to dilute the effects of inflation worldwide (i.e., export our inflation). Eventually, however, you can no longer kick that can down the road, and it catches up with one. We see the result of this today.
Loss of Reserve Currency status is certainly accelerating the effects of deficit spending, ie inflation. Debt is Wealth. That is the message drilled into every MBA numbskull. CPA, town manager and taxpayer. Interest can be deducted. Buying with cash is dumb. When savings rates are so low and prices are rapidly rising, paying off today’s purchases with less valuable dollars makes sense. At some point though a $30,000 pickup just isn’t worth $80,000. That’s inflation.
Debt is Wealth. That is the message drilled into every MBA numbskull. CPA, town manager and taxpayer. Interest can be deducted. Buying with cash is dumb.
The irony is that current Economic Thinking discounts the "too much money chasing too little goods" theory. Theories like "new monetary theory" have been floated, but they do a pretty poor job explaining the Covidiocy inflation. In the Pre- era, inflation was limited because there was an unlimited reservoir of overseas labor ready to send another hammer to Home Depot the second one was sold.
My take is that inflation will take off when there is a limiting factor to production in the economy. In the '70's, that limiting factor was oil. During the Covidiocy, it was production (shut downs of factories and service establishments).
Today, for the first time in a long time, the limiting factor is labor. A combination of the Boomer generation retiring and re-shoring production has driven the labor supply down and the labor demand up. Presto, labor limitations are causing production limitations. Added are the birth rate bomb in China (and earlier, Japan). As a result of the labor shortage, restaurants are limiting hours, truck dealerships take 10 days before they can diagnose a truck, and P&G figures they can pass along their DEI driven increase in labor costs...... And we have inflation.
Next fun economic topic to discuss: what's the optimal level of inflation? (Hint: it's NOT 2%).
You have taken in to Account that the Largeness of the Government as it has Expanded The Welfare State has made it less likely People will join the Workforce..
Most of the Labor Gains have been from Illegals not the Indigenous Slugs
Voluminous Government Spending via the Federal Reserve Policies is what causes Inflation..
Incidently the federal reserve does not print the money. , the dept of treasury does, the amount there of mandated indirectly by the federal reserve and deficit spending of congress. I believe if the congress would truly balance the budget, eliminate the federal reserve and go back on a gold standard, allow the free market to determine interest rates , inflation would largely disappear
Incidently the federal reserve does not print the money. , the dept of treasury does, the amount there of mandated indirectly by the federal reserve and deficit spending of congress. I believe if the congress would truly balance the budget, eliminate the federal reserve and go back on a gold standard, allow the free market to determine interest rates , inflation would largely disappear
Of course, but they wouldn't be able to send billions to Ukraine and Israel that way, because they'd actually have to convince the American people to accept massive tax increases to pay for it.
The OP is just another old fugk similar to wabitard, asks a question, for attention being an octogenarian. Fails to ever return to the thread to engage responses.
Yep hawk_eye. That’s the idea. I forgot to Mention congress will have to get the budget balanced through responsible spending, not raising taxes. And hopefully the people will wake up and demand responsible conduct of their representatives.
If I could just get a proper Royal Cola and current TeeVee guide, I’d say fugk you Moolinls and Gin Ex’s type.I got my Tiremint and $59 pension. GFY I werked.
Where are all of these massive amounts of money where these United States citizens are supposed to be getting?
How much money was printed by the government in gold towns or silver towns when the prices skyrocketed??
If the government printed a warehouse full of money and it doesn't get to the people prices don't go up.
But some people are greedy then the price is go up. It's all greed.
Rich,
Remember all those Covid checks, remember student loan forgiveness, remember earned income credit, remember child tax credits, remember people who get 10,000 dollar tax refunds, when they have paid zero to $1000 dollars in with holding all year, remember obama phones, remember food stamps and EBT cards, remember HUD housing allowances, remember "energy assistance, remember free school lunches......three times a day, remember $15/hr at every burger joint in the country, and $10 for a Whopper and fries, remember indefinitely extended unemployment benefits, remember employer benefits paid for keeping the doors open during the pandemic!
It goes on. The list is endless. Lots and lots of cash circulating in this economy, competing for the same goods as was always available.
Why does a Chevy Truck or Tahoe cost $100K? Because people will pay it.
As soon as the consumer ceases to buy, the price will come down. It matters not what the goods are.
People who choose to brew up their own storms bitch loudest about the rain.
Where are all of these massive amounts of money where these United States citizens are supposed to be getting?
How much money was printed by the government in gold towns or silver towns when the prices skyrocketed??
If the government printed a warehouse full of money and it doesn't get to the people prices don't go up.
But some people are greedy then the price is go up. It's all greed.
Rich,
Remember all those Covid checks, remember student loan forgiveness, remember earned income credit, remember child tax credits, remember people who get 10,000 dollar tax refunds, when they have paid zero to $1000 dollars in with holding all year, remember obama phones, remember food stamps and EBT cards, remember HUD housing allowances, remember "energy assistance, remember free school lunches......three times a day, remember $15/hr at every burger joint in the country, and $10 for a Whopper and fries, remember indefinitely extended unemployment benefits, remember employer benefits paid for keeping the doors open during the pandemic!
It goes on. The list is endless. Lots and lots of cash circulating in this economy, competing for the same goods as was always available.
Why does a Chevy Truck or Tahoe cost $100K? Because people will pay it.
As soon as the consumer ceases to buy, the price will come down. It matters not what the goods are.
Remember when you were a regurgitating , self over educated retard? I do. You fuggin retard
Think of it like a see saw on the playground. on one side you have all of the dollars in circulation. On the other side is everything of value, goods and services that have real value. They are balancing each other out. When money is printed and added to circulation then it naturally tries to balance. So everything of real value over time rises in dollar value to match the.dollars in circulation. The dollars are devalued because it takes more of them to buy something with real value than it did before the new dollars were added. What it means to us when they added 20% more dollars to the economy during the covid scam, is the 1000 dollars we had in our savings account. Only buys 800 dollars worth of stuff now. The SOBs stole 20% of our work and savings.
It is the only real world way to reduce the National Debt. As if anyone in .gov really give a schitt about the National Debt.
People who choose to brew up their own storms bitch loudest about the rain.
Where are all of these massive amounts of money where these United States citizens are supposed to be getting?
How much money was printed by the government in gold towns or silver towns when the prices skyrocketed??
If the government printed a warehouse full of money and it doesn't get to the people prices don't go up.
But some people are greedy then the price is go up. It's all greed.
Rich,
Remember all those Covid checks, remember student loan forgiveness, remember earned income credit, remember child tax credits, remember people who get 10,000 dollar tax refunds, when they have paid zero to $1000 dollars in with holding all year, remember obama phones, remember food stamps and EBT cards, remember HUD housing allowances, remember "energy assistance, remember free school lunches......three times a day, remember $15/hr at every burger joint in the country, and $10 for a Whopper and fries, remember indefinitely extended unemployment benefits, remember employer benefits paid for keeping the doors open during the pandemic!
It goes on. The list is endless. Lots and lots of cash circulating in this economy, competing for the same goods as was always available.
Why does a Chevy Truck or Tahoe cost $100K? Because people will pay it.
As soon as the consumer ceases to buy, the price will come down. It matters not what the goods are.
Where are all of these massive amounts of money where these United States citizens are supposed to be getting?
How much money was printed by the government in gold towns or silver towns when the prices skyrocketed??
If the government printed a warehouse full of money and it doesn't get to the people prices don't go up.
But some people are greedy then the price is go up. It's all greed.
Think about the first bit of this, do it eyes closed if you must but the amount of money out there - really isn't cash like you have in your wallet. We give 10b to Ukraine, we don't wait for the printing presses to fire up - we just "create it" electronically and send.
Trump and Biden flooded the market with more than $5 Trillion during the pandemic and folks spent it like drunken democrats. Too much money chasing too few goods. Toss on top of that Team Biden's disastrous energy policies and the only predictable outcome was red hot inflation.
The OP is just another old fugk similar to wabitard, asks a question, for attention being an octogenarian. Fails to ever return to the thread to engage responses.
Ohhh Sugartits, let me post 19 paragraphs of cut n paste. I want to feel important and impress a 79 yr old dipchit
Where are all of these massive amounts of money where these United States citizens are supposed to be getting?
How much money was printed by the government in gold towns or silver towns when the prices skyrocketed??
If the government printed a warehouse full of money and it doesn't get to the people prices don't go up.
But some people are greedy then the price is go up. It's all greed.
Rich,
Remember all those Covid checks, remember student loan forgiveness, remember earned income credit, remember child tax credits, remember people who get 10,000 dollar tax refunds, when they have paid zero to $1000 dollars in with holding all year, remember obama phones, remember food stamps and EBT cards, remember HUD housing allowances, remember "energy assistance, remember free school lunches......three times a day, remember $15/hr at every burger joint in the country, and $10 for a Whopper and fries, remember indefinitely extended unemployment benefits, remember employer benefits paid for keeping the doors open during the pandemic!
It goes on. The list is endless. Lots and lots of cash circulating in this economy, competing for the same goods as was always available.
Why does a Chevy Truck or Tahoe cost $100K? Because people will pay it.
As soon as the consumer ceases to buy, the price will come down. It matters not what the goods are.
Thank you, Idahoo_Shooter. You gave me some facts I overlooked.
"Only Christ is the fullness of God's revelation." Everyday Hunter
Yup inflation all right. General Mills gives a $300 million dividend to investors, bought back $150 million in stock to enrich exects and investors and pays its CEO $16 million. It makes $2.1 billion a year in profit.
It is raising prices on cereals 20% and blaming "inflation".
My other auto is a .45
The bitterness of poor quality is remembered long after the sweetness of low price has faded from memory
And the only reason why General Mills is able to do all that is because there is too much money in consumers' hands. You can't raise prices by 20% if there is no money in the market. Well you can of course, but you won't stay in business long.
If we truly want to bring inflation down nothing can do it better than a strong recession. And the only hope for a strong recession is for consumers to stop buying $hit.
The pandemic free money handout will be felt for years to come.
We have not yet seen the full inflationary effect of our currency creation because much of the currency is in foreign markets (hence the common observation that we have "exported" our inflation to other countries). This is why we have not seen the commensurate inflation here, based on the amount of debt/currency creation.
As foreign sovereigns de-dollarize (sell/redeem US debt and refuse to buy more) we will see dollars come flooding home...and the price inflation will be epic.
USMC 0351
We know the price of everything and the value of nothing.
We have not yet seen the full inflationary effect of our currency creation because much of the currency is in foreign markets (hence the common observation that we have "exported" our inflation to other countries). This is why we have not seen the commensurate inflation here, based on the amount of debt/currency creation.
As foreign sovereigns de-dollarize (sell/redeem US debt and refuse to buy more) we will see dollars come flooding home...and the price inflation will be epic.
inflation is one thing but corporate greed is another and i think some CEO guys/ladies are lining their pockets and using that for an excuse just look at beef prices versus chicken and pork... somehow bacon is worth $8 dollars a pound now and loin is under $4 chicken is still under $3 but a dozen eggs was what $5 not long ago...
We have not yet seen the full inflationary effect of our currency creation because much of the currency is in foreign markets (hence the common observation that we have "exported" our inflation to other countries). This is why we have not seen the commensurate inflation here, based on the amount of debt/currency creation.
As foreign sovereigns de-dollarize (sell/redeem US debt and refuse to buy more) we will see dollars come flooding home...and the price inflation will be epic.
I wish I had thought of that.
Not everyone gets to live on here and read every post!!
At least you know there is one other goober in your camp!
USMC 0351
We know the price of everything and the value of nothing.
And at the risk of repeating (but what the heck)...we have to recognize that the majority of the "money" in the system did not come from the Treasury/Federal Reserve dirty dance.
Most of it comes from fractional reserve banking.
ie, banks making loans with rehypothecated deposits. Poof! New money!! Yippeeee
TPTB love seeing trillions in student loans and credit card balances. Not to mention all the auto loans and mortgages.
"Money" really does grow on trees.
USMC 0351
We know the price of everything and the value of nothing.
Fractional Reserve Banking and the Federal Funds Rate has been at zero or near zero since 2010. It wasn't until $5 trillion new dollars entered the market starting in July 2020 causing inflation to spike from 1.4% in 2020 to 7% by 2021. Flooding the market with free $$$$ is what caused the current inflation spike.
Giving $61 billion to Ukraine does not cause inflation if you take it from some other part of the government. Giving $61 billion to Ukraine when you don't have the money, and simply print it, is what causes inflation.
Don't blame me. I voted for Trump.
Democrats would burn this country to the ground, if they could rule over the ashes.
The soup analogy is a a good one, but the image below clearly shows it isn't the soup that was watered down!
The soup (and the can with the red/white label) are essentially unchanged. Prices were relatively constant for 80 years but then wham, there was a drastic change that occurred in the early 70s. Hmmmm, what could that have been?
Thanks for posting this, AKislander. Everyone who runs for Congress should be required to understand this chart. Almost none do.
Don't blame me. I voted for Trump.
Democrats would burn this country to the ground, if they could rule over the ashes.
If you think of inflation as worthless currency, mere digital units today, it's a fact. But such counterfeit, phantom "money" is indistinguishable from the real. Legal tender means everyone has to take Fed Reserve Notes backed by the duplicity and fraud of the US Government. Another $61 Billion to Ukraine will never hit the streets of Cincinnati, and maybe not even Kiev, so it shouldn't cause increased prices at Walmart for average Americans. So how does it and why? I do not know and can't explain it. I suspect what inflation really boils down to is usury, which has no value, intrinsic, value added or emotional. But it is debt. Debt is dead weight, a short circuit that draws off capital in the form of interest to reward vultures who encourage low life Congressmen to sign our names to hot checks. A huge portion of the national debt is pure interest alone of no intrinsic, useful, or lasting value. The money changer vultures know more ways to reward these stewards of our destiny by stock market manipulations alone, that rewards them and reinforces the myth that debt is wealth, because they themselves are enriched. The debt cannot be paid by productive investment as sound loans historically have done. Gifts to oligarchs and petty "Democracies" are not sound investments, just high interest bearing loans the gifted do not repay. It becomes our National Debt. It must be refinanced with new debt repaying old debt because America has lost all ability to produce. That is "Emergency Spending Bill" basics, and self perpetuating theft. I think that is inflation.
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