If We Don't Get Inflation Under Control, It Could Unleash Some Dramatic Consequences
America needs to get its fiscal house in order.
Inflation has reached its highest level in decades. While we're not yet in a situation like we had in the 1970s—and we can hope that the Federal Reserve will regain control before it reaches that point—there are still plenty of reasons to be upset that inflation is getting so out of hand.
Inflation is commonly defined as a general increase in prices, leaving our money with less purchasing power. When the prices of goods and services increase faster than wages, workers essentially take a pay cut. Savers and those who receive interest payments also lose out. Once inflation hits the value of the money saved, its spending power wanes.
Of course, wages and interest rates eventually adjust, but the time lag can be extremely painful for many folks and businesses.
And though the tax code has improved since the 1970s, it still has several features that interact with inflation to inflict unjust punishment on taxpayers. For instance, when there's inflation, investments and savings can end up being taxed away. Larry Kudlow, former president Trump's chief economist, illustrated the problem for capital gains like this:
"You invest $1,000, and after 10 years, you sell that investment for $1,200. But if inflation averaged 2.5 percent in that period, the $1,200 you receive will be worth less in real terms than the $1,000 you invested. And yet, under current law, you will pay a tax on your $200 capital gain."
This phenomenon is well-documented by tax experts. So is the penalizing effect of inflation for businesses. Instead of fully and immediately deducting investment costs from their taxes, they must follow a depreciation schedule as the money loses value. Two Tax Foundation researchers gave this example: "If a company spends $39,000 to purchase a building, the deduction for $1,000 in year 39 is worth a lot less than the $1,000 deduction in year 1."
Not everyone loses when inflation suddenly appears, though. For example, debtors get to repay their loans in less-valuable dollars. This benefits no one more than the federal government, the world's biggest debtor. Think about it this way: With 6.8 percent cumulative inflation over the past year, the value of the roughly $24 trillion Uncle Sam owes to the public has become less burdensome without Congress showing any sign of fiscal responsibility.
Not surprisingly, history is full of kings and governments using inflation to reduce their debt burdens. Understandably, holders of debt bonds get nervous when highly indebted governments are slow to rein in inflation.
People with fixed-rate mortgages and other debts can similarly benefit from inflation. However, if it persists, interest rates could start to compensate by rising as they did in the 1970s. If this were to happen, everyone who owes money with flexible interest rates will see their payments go up. Depending on how fast rates and inflation increase, borrowers could quickly find themselves owing a lot more.
Just like everyday borrowers, the federal government may face such a crisis. Some $6 trillion—or 25 percent—of our debt has a maturity of less than one year. Every year or so, that amount needs to be paid back and borrowed again. However, if inflation persists, creditors will demand higher interest rates next time. Given the massive size of our public debt, even a small increase could trigger much larger interest payments.
According to the Congressional Budget Office, in the next decade, the Department of the Treasury will have to pay somewhere in the neighborhood of $5.4 trillion in interest payments. A 1 percent increase in rates would add some $250 billion a year to that sum. This is money the federal government does not currently have and would have to borrow at higher rates.
In other words, inflation, in conjunction with the enormous government debt and short-term financing, could unleash dramatic consequences. This risk should provide important incentives to put America's fiscal house in order, including moving away from short-term financing. But so far, there's no sign of anyone willing to make the tough choice.
While these are only a few of the problems created by inflation, they impose real, long-term costs on real people. It's yet another thing to think about before agreeing to more aggressive, expensive government programs.
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About a man named Jed? A poor mounaineer who barely kept his family fed?…
This is not the inflation you are looking for.
Inflation and the Mafia. Amazing how many people believe those myths are real!
Next you’ll tell me about the “antifa” conspiracy theory and how they are taking over multiple city blocks and declaring autonomous zones, and how that’s not really an insurrection because they have good intentions.
Local story.
there is no inflation.
Price increases ARE NOT ECONOMIC INFLATION.
The Left Wing media ran this lie back in 2012 during the Obama Biden Economic disaster when prices were jacked up for no good reason when inflation was 0.8 – 1.2 % ( BLS calculator) at a historic low.
This was accompanied by lies about corn shortages when Ag Day, a credible media source, said there was 12 TRILLION bushels of excess corn backed up at New Orleans.
Inflation is an increase in the real money supply, not prices. The two are not related in macroeconomics.
The real money supply is in the billions but Govt spending is in the trillions, proving its not money theyre using.
Its digital computer credits issued to banks.
That was discussed in Forbes Mag. Nov. 2011 article titled ” The Money Printing Myth”
Also see the comments of the Denver Federal Reserve in 2009 about the disaster that woukd ensue if these credits werent clawed back.
Same lies, different liars today, both telling this lie to deflect from utter incompetence of Democrats to do anything economic except totally fuck things up.
FJB
M0 is $6T, M1 is $20T, and M2 is $22T.
M2 has increased about 30% over the last 3 years. That’s the real inflation rate.
You know what? I think I’ve figured out what’s going on: We’ve gone through a worm-hole and ended up on Planet Algon (Fast-Forward to 22:27:)
Monty Pythons Flying Circus Season 3 Episode 9 The Nude Organist
https://dai.ly/x3dngog
I’m continuing to get rich based on the reckless spending of our ‘leaders’, and I don’t see that changing any time soon. No matter what your plan is, you MUST have a plan for when the fed ruins the value of the dollar.
I suppose that you haven’t bought gold and silver, which have fallen during the last year.
I never understood those who buy metal in expectation of “the collapse”.
What you want to stockpile is food, medicine, and weapons to protect the first two.
After “the collapse”, why would I trade you food for gold? I can’t eat gold. You can sit there and starve to death looking at your barn full of metals.
‘”I never understood those who buy metal in expectation of “the collapse”.’
Yeah. That never made sense to me either. In a “true” collapse, we’d all be bartering with each other for stuff that has actual, real-world value.
There are varying levels of collapse.
Exactly. The most likely being a long, slow collapse full of earthly pleasures.
I can dig that.
And things don’t collapse everywhere. The fleeing Jews who had gold weren’t sent back on the boats. That is a true story. Asians love precious metals. Their countries have generally experienced hyperinflations before. You can go to Vietnam and use silver eagles almost anywhere. They know them and love them. Another benefit is confiscation through courts. They can’t steal what they don’t know you have. If you ever find yourself in trouble liquidate all assets and buy gold. Hide in multiple locations. Keep some in cash. Go to casinos get obnoxiously drunk, lose money, get kicked out orcat least make a good scene so you are remembered. When the courts come looking for your money tell them you have a drinking and gambling problem and that you could really use some help ????. The problem with the vast majority of Americans is they have become soft and are easy targets. They haven’t experienced any hard times and have never had to fight for anything. They don’t have the first clue where to start and start blabbing nonsense.
Not other than dicking around coins, no. Been betting against the dollar with BTC for years and years at this point. If I was actually rich instead of poor rich, I’d be gobbling up land like Gates.
So why doesn’t it matter what the plan is?
And with a handle like yours, is your plan to be the exclusive seller of peanut butter-‘n’-‘nanner sammiches and jelly donuts to The King? Will you also sell to that little bit of The King inside all of us (except Michael J. Fox, of course?) 🙂
Elvis Is Everywhere–Skid Roper and Mojo Nixon
https://youtu.be/0ccke5PnSLA
Remember: inflation doesn’t exist. Also, it’s good for you. Also, it’s caused by greedy capitalists.
Relax, it’s just transitory, so you can ignore it. But it’s also persistent, so you can plan for it and profit from it.
Heads you win, tails you win!
USA=Argentina with nukes.
…with a Venezuelan economy and a clown for president in both cases.
Fuck
Joe
Biden
This country is going down like Kamala. Nothing can stop that.
But will it feel as good?
It’ll only hurt if she laughs.
Um, Argentina has a Venezuelan economy and a clown for a president.
KMW, you really need to put the leading economics expert in this comment section on the official Reason.com payroll. Ask your benefactor Charles Koch for the extra funds. Heck, let him write under his admittedly vulgar pseudonym if he wants.
But he’ll explain that spittin’ tobaccy — and only spittin’ tobaccy — rising in price does not mean we’re experiencing the i-word.
#InflationIsAWingnutMyth
#DefendBidenAtAllCosts
Is it time to go way back into time on how Reason voted last year?
It would be germane to post how each editor, writer and contributor voted.
Strategically.
Both major parties support big government and inflation so why would it make a difference?
What is the vote projection on another 6 Trillion again?
Are we pretending both parties are exactly equal again?
Boaff sidez!
Because 12 trillion is a little more than 6 trillion?
I used to think that. Now I look at New York, California, Florida, and Texas. I fully confess I was wrong. Lesser evilism is a thing. Fuck Joe Biden. Keep Florida free Ron and stay out of DC. Let the liberals stew in their filth. Keep the country divided and just ignore DC
My life is better. No regrets here.
I mean they did increase food stamps by 30% so I’m sure yours is. Did Brock raise his pay?
Did you move into a nicer trailer park?
Trailer park? Hardly.
He did manage to wrangle a larger refrigerator box though.
I was being charitable.
Yes, we know you’re a selfish, egocentric totalitarian shill already.
Last time I counted.
1st : Jo Jorgenson
2nd : Not voting / No one
3rd : Biden
4th : Trump (just lonely old Poole)
From ML:
Let’s read Slade, Dahlmia, Boehm Riggs, Ciaramella, Weissmueller and Welch’s posts on the matter:
“I will cast my ballot for Joe Biden in Michigan, a swing state, because there is no bigger libertarian cause right now”
“Who do you plan to vote for this year? Joe Biden. The nationalists said the libertarian-conservative consensus is dead, and I take them at their word. Also, Stephen Miller is a white nationalist.”
“I will vote strategically… for Biden.”
“I will cast my first ever vote for president for Joe Biden in the battleground state of Pennsylvania.”
“I’ve been vacillating between sitting out this election, as I did in 2016, or voting for Joe Biden. The strongest argument for the latter choice is that it’s an opportunity to support the repudiation of both Trumpism and AOC” (lol)
“I’ll be voting for Joe Biden, primarily for three reasons: (1) A feeble president Biden seems like an opportunity to erode the power and glamour of the dangerous cult of the presidency and also push socialists, nationalists, and identitarians back to the margins, creating space for a more libertarian-friendly coalition to emerge.” (Oh wow! lol)
“If it was going to be close in my state, I might have considered holding my nose and voting for the person most likely to supplant the eminently fireable incumbent.”
https://reason.com/2020/10/12/how-will-reason-staffers-vote-in-2020/
the “my first ever vote” thing kills me every time … carry that banner into battle!
Mine was for Ross Perot.
also voted for Ross Perot. read my lips indeed.
I still hsve Perot bumper stickers on my truck.
Perot: “When you find yourself in a hole, stop digging”.
Republicans: “We’re digging slower than they are.”
Dems: “What hole?”
Perot was intended as a spoiler for Marrou.
Note that Perot’s staffers came from both Democrat and Republican staffs, then most WENT BACK after the election.
I don’t think this is true. If you actually remember back… it was a three way tie in the polls until Ross dropped out. He got the horse head treatment and was made an offer he couldn’t refuse. When he came back in the charts all went bye bye, he ran a typical campaign, and was called a crazy not for dropping out. He was a guaranteed loser at that point.
Mine was for Reagan in 84 (as a high school senior). After that it’s been LP candidates.
???? I’m not sure the first part being true makes up for the rest
“A feeble president Biden seems like an opportunity to erode the power and glamour of the dangerous cult of the presidency and also push socialists, nationalists, and identitarians back to the margins, creating space for a more libertarian-friendly coalition to emerge.”
Don’t forget Ilya Somin, who said he would vote for Biden because Trump spent too much.
*Wayne and Garth go: “DUH-DA-DA-DA! DUH-DA-DA-DA! DUH-DA-DA-DA!…”*
Inflation is always profit.
Tom Brady on line 2 …
Inflation is so bad the cost of racial healing gardens is through the roof.
https://www.dailywire.com/news/university-spent-250000-on-a-racial-healing-garden-that-no-one-uses
List of plants banned from being grown there included cotton and collard greens.
Definitely no Bat Orchards near the cotton.
https://www.serenataflowers.com/pollennation/black-flowers/
As long as they can still grow watermelon
Racist fruit will be illegal.
But is that discrimination against gays?
Ok then.
It’s not going to stop. There is no appetite among the American people to actually reduce government spending. There are plenty that would entertain the idea for other people, but not for themselves. We are headed for economic destruction. At this point, there is simply no way out.
Sadly as much as I like to pretend this isn’t so.. It probably is.
Too many American’s have been allowed to entertain the “Conquer and Consume” mentality. As it has been so with many other fallen Nazi/Commie nations.
No mention of Trump or the Republicans? What a load of crap! This article is only critical of the current administration and totally biased! Where is the critique of the other side? Obviously Reason is a conservative rag that only pretends to be libertarian.
Why did you lie about past statements in the roundup thread?
https://reason.com/2021/12/16/manchin-biden-build-back-better-voting-rights/?comments=true#comment-9261611
Posted your actual comments again since you seem to always forget.
Front page of my newspaper still has its daily Trump story.
Well that settles it. Reason is a conservative rag for not having a daily Trump story.
Get your brain looked at.
Not sure which asshole is getting your suggestion, but brains are sadly lacking among them.
Hes still President.
Exactly what did Trump and the Republicans do that caused inflation?
Biden on the other hand issued 40+ plus executive orders that changed most of Trump’s policies and are the cause of inflation. There actually two things causing the inflation. First is the $5 trillion in stimulus from the covid bill. There was no $5 trillion so it was all printed money. That is on Congress, both Houses, both parties. It was unanimous so a Presidential veto would have been useless and used in an election year as fodder for attack ads that the President doesn’t care about Americans, Trump had little choice but to sign it.
We could have probably lived with that, but Biden’s executive orders shutting down the pipeline and ending all oil and gas operations on Federal lands ended out energy independence and raised energy prices. Higher energy prices effect everything grown, everything manufactured and everything transported. That is all on Biden and Biden alone. Then throw in mandates, putting people and companies out of work, and you have less good and services. That to is on Biden. Couple that with the continued insane spending bills of the Democrats when again there is no money, it will all be printed, and no one believes the lies these trillion dollar bills won’t cost anything, even the CBO, and you see Bidenflation is through the roof. If you can’t handle the truth, and have no proof, go to the HuffPo and read their partisan lies (as they won’t let you comment) and have your false beliefs reinforced.
Well I just financed a new car. If housing prices weren’t stupid I’d finance one of those too. Good time to go into debt. Bad time to save.
Lol. This is why you live in an apartment.
New cars are up 15% since last year. You aren’t saving anything from financing.
Wow.
And just like high school, the asshole who wont leave me alone who I politely ask to leave me alone must respond to everything I say.
I actually responded to your argument while you yell names and lie about what you’ve said in the past. Youre the only one who admits he trolls here.
And it wasn’t politely lol. God damn. You are a chronic liar.
As relentlessly as a 15yr old girl.
See, I responded to your argument.
You name call.
I thought you were about ideas and not personal attacks.
I mean, from an outside party you are acting kinda stalky. Seems as if he really got under your skin somehow.
You don’t like him, we all know it. Your right, but no need to remind us every time he posts.
IDK, as someone that stalks all ya all, it’s nice to see someone call out his comment on financing an overpriced vehicle for what is: stupid ( while he was trying to “show us thread readers” how stupid JAZ is)
As a thread reader that reads this stuff later..it makes it much more interesting (and most here are better writers than the authors, save revcuntland and spaz..but even theirs is funny too)
He is bragging about financing a non appreciable asset that loses value as soon as he puts the key in.
It is a fucking stupid statement to make.
I’m on a comment board responding to his idiocy.
Whats the definition of stalks to you bevis? You’ve responded to me quite a bit the last 2 weeks, guessing you are vying for sarcs affection he has given to Mike, are you stalking me?
What an idiotic comment. There are plenty of his comments i don’t respond to dipshit. I respond to his idiotic ones or when he puts my name in a post.
Sure pal. I’ll cure your stalking worries. Had you on the ignore list, but took you off because you made some reasonable comments. My mistake I suppose, but I can correct it and ease your stalking worries with one click.
Later.
Lol. Is that your love note to sarc?
You’ve been attacking those criticizing sarc for a few weeks now, yet you never call out his daily, every thread bullshit.
Weird.
No one really like Sarc. He’s a useless drunken, trolling, lying little bitch. He shits up many, many threads.
you morons enable him / her / it
Blame yourselves.
He is so drunk he doesn’t remember what he said even this morning. What we do has no bearing on his agency.
He is often first in thread with a retarded strawman.
He calls out posters not in thread as much or if not more than others.
And what about the asshole who muted someone with the presumed intent of ignoring them, and feels he has to respond anyway to something he claims to not have read?
What about that[,] asshole?
Just for fun. Sarc talking about Ken:
sarcasmic
December.15.2021 at 12:44 pm
Flag Comment Mute User
Says the guy who mutes anyone who points out the logical conclusions of his emotional rants.
I refinanced the house while I was bored during the pandemic. These rates are ridiculous, all the more so paired with this inflation, and may not happen again in your lifetime. Furthermore, I would prefer if my home value to decrease at any point in my lifetime, and you can’t say for sure that houses will be cheaper in the future.
You can essentially be paid to borrow money for a mortgage right now. I say get your dream house. The only thing that matters is how much of a monthly payment you can handle.
Did you finance the breathalyzer too, or did the state pay?
Hilarious to see you crying that people won’t leave you alone when asked politely. It’s like you have no awareness of the policies of the totalitarians you suck off day.
Any bets on whether and when this actually happens? Biden says as much shit as Trump ever did, you can safely ignore whatever he says because nobody knows whether he means what he says or if he even knows he’s saying it.
Shit, meant to be a reply to Paul’s comment about Biden re-starting required student loan payments.
The Biden Admin restarting loan payments is apparently the only way I can get my remaining loans paid off. When the DoE froze them in April or May of 2020, it took them about 4 months for them to notify me that they were halting my automatic payments.
With interest set to 0% temporarily and no payments required, I figured that would be the perfect time to make large payments against the remaining principle, but the only way to change my loan status was to call an actual person during office hours (8-4pm CST) during a time when most of these pajama-class folks were working remotely. There was no way to do this online.
On the occasional chance that I actually got through to someone, I would get ‘gov-splained’ that I didn’t need to make the payments, and not to worry, since no interest was being charged. When I tried to explain back that that’s specifically *why* I not only wanted to make my payments, but increase them, I was referred to a DoE credit counsellor, who knew about as much about credit and interest and payments as you would expect any DoE employee to know about education.
. . .or even what the disjointed string of sounds means . . .
they will never get it under control. They will never do what it takes. They will drive us off the cliff.
The only thing you can do is get ready for it.
Reality will stop it, if nothing else. It may end with crazy inflation, it may end with a war with China as an excuse for repudiating their part of the debt, it may end with defaulting on the whole thing or postponing it or devaluing it. But it will end someday.
seeing Khruangbin tomorrow nite to help ease the pain
https://www.youtube.com/watch?v=01RQSO7IrRg
Translation: Let’s surrender and vote with the looters.
Don’t worry. The Dems only wrote 2.5 trillion on the blank check McConnell gave them to increase the debt ceiling. That will hold us for almost a full year. We hope.
Bye Nancy.
Bye Joe.
Bye Kamala.
I wouldn’t be so sure. Maybe I’m skeptical because I had never watched an election count come to a complete stop along with POTUS banned from communication with the electorate.
In any case the DNC has been promoting, non stop, the equality of the 1970s.
>>come to a complete stop
*was* strange. figured we were gonna have to burn things @3a.m. but the party never got started
Even the coverage before the stoppage was crazy. They waited until the last possible moment to call Trump states, while calling Biden states almost instantly. The net effect is that it looked like Biden was ahead the whole night, when he was in fact getting his ass handed to him.
Wiped.
That’s because the dead and phantom voters weren’t showing up for Biden until midnight, long after the counts were supposedly stopped and the observers forcibly removed. Despite anything Jacob the liar says.
Every FOX News host and Trump’s children were texting Mark Meadows to have him beg Trump to stop the insurrection he caused.
I wish Democrats would cheat, if they had to. You people are actually too insane to have power.
You know they released the texts right? You don’t have to lie about them.
You cant buy Nancy or Joe but Kamalas cheap!
Ask Willie.
With 6.8 percent cumulative inflation over the past year, the value of the roughly $24 trillion Uncle Sam owes to the public has become less burdensome…
24 trillion? Who do you think is on the hook to pay back the other 5 trillion, Congress?
J’adore Veronique De Rugy. Bien explique’, mme.
As long as the idiot filled Biden Administration keeps governing for the approval of progressive Twitter it ain’t gonna happen. Someone needs to get that group’s collective head out of its collective ass, but who? The media? Lol. Manchin is saving them and us from disaster, but for how long?
theres no hope as long as big city Liberals are on welfare. Welfare voters beget welfare doling politicians.
Its a perpetual circle- jerk.
FJB
the author’s definition of inflation is not quite right. inflation is when we have more money chasing fewer products. the current inflation is 100% caused by slow joe and his congress printing money to pay for their socialist programs. if build back bolchevique passes things will be much worse for much longer. thankfully the bill is currently dead.
Not quite. About 30% of it is from the damage done by the “Progressives'” having done their best to nuke the economy.
true that
Youre lying. No ones printing money.
Get off your lazy ass and look up the M figures ( money supply).
Real money us NOT trillions.
Where does the Fed get the funds to buy Tbills?
Well, we could always reel some of that excess money back in with massive tax increases. Not sure what else would work.
Throwing Democrats in wood chippers would fix it. Do they make a model that processes shit?
It would certainly accelerate our divorce. Seriously inflation destroys a moral fiber of a country and usually ends it (Rome, Germany and so on). You can’t rely on bond vigilantes to force the Fed anymore. Too much federal debt, too much debt to roll over, too much demands for spending by the welfare/warfare state, too little productivity.
You need two things to occur which even the most libertarians have no stomach for. First end the Fed or at least return it to its original role of providing cash to banks who have short term liquidity issues in return for longer term performing assets. Second stop all govt deficit spending today. that means cutting the federal govt 50% or more (all good). Never going to happen
Pollo preaches cowardice. Texas Senator Morris Sheppard, whose proudest boast is that he helped write the 18th Amendment, boasted proudly: “There’s as much chance of repealing the 18th Amendment as there is for a hummingbird to fly to Mars with the Washington Monument tied to its tail.” Then the Liberal Party repeal plank won the elections of 1932, 36, 40, 44, 48…
I see a lot of hysterical hair-pulling in favor of policies that help people who have interest-earning money saved.
What I don’t see is a lot of libertarian economic policy.
“Of course, wages and interest rates eventually adjust, but the time lag can be extremely painful for many folks and businesses.”
Duh, and you want the full might of the US federal government to do somethin’ about it? Since when do we care about how long supply and demand take to settle things for us so that our nerves are calmed?
And don’t give me “It didn’t start as a free market, so we’re not going to treat it like one now,” vis a vis: stimulus checks. Welcome to reality-based economics. No national or global economy starts from the ground up. There are always arbitrary initial conditions.
Eliminate all welfare. Eliminate government schools. Close all foreign military bases. Stop all foreign aid.
Great, we could be the absolute poorest, least literate, least internationally engaged country in the OECD. Well, I suppose we wouldn’t be OECD anymore.
Go run a campaign on it.
Cite?
Don’t you brag about Germany economy? Even with a projected recession? The EU in general spends less on defense and more on social programs, yet has slower growth. Odd.
Defense is a separate conversation to me. I’m obviously sympathetic to large defense cuts given my political inclinations.
I’m mostly concerned with how we have an advanced, powerful economy with a population that reverts to pre-industrial levels of literacy.
Wait… so less spending for you care abouts is fine, but any other cuts you dont agree with makes that person heartless. Hmmm….
It is due to the government schools. But hey, we just need to throw more money at it.
This is what always amazes me. Public schools keep getting more and more progressive and kids keep getting less and less capable and intelligent.
Yet the answer always is, more money and more progressivism to fix the problems.
The lack of awareness on this issue by the left is fascinating to me. Moreover, hanging with progressive teachers and professors and they constantly complain about how stupid their students are. Yet, nothing of reflection at all.
Because the Left “react” as told. And then NEVER look back at what that reaction has caused. As whistling by the grave yard is a requirement to sooth thier soulless and worthless life styles.
The Phucko Knows
B…b..b..but Nutsy Piglousy said welfare is good for the economy.
She should know, shes poor.
“War is good for the economy because a dead guy cant flip a burger.”
Bobcat Golthwaite
I am not sure there is any real way to stop inflation, it simple has to cycle through the economy. The problem is that too much money was given out during the pandemic by both parties, that money was not really spent, and it now need to be worked back through the economy.
I am therefore not inclined to believe any politician can do anything about inflation. I expect it to subside when people’s appetite to buy things dissipates.
That is an impressive “both sides” stretch you got there.
Dec 2020 then President Trump call $600 payments too low says everyone should get $2000. That money is coming back to haunt us as inflation. So yes, both sides. Many, myself and libertarians called for help for those that needed it but not for everyone.
Did he get it, or did Nancy Pelosi slow walk that $2k until Trump was gone, then drop it when she can sign… In the middle of tax season, pushing returns back by months as the IRS manually adjusted?
Just for clarification.
Are you sure it’s not because the recovery is just way too good?
ALL inflation throughout history is CAUSED by those in power. It is in no way a natural occurrence. This current worldwide reset can only start forward after the current systems r destroyed. THIS…, is WHAT this covid nonsense is hiding. Remember children… The Orange Man was also spending like a drunken sailor.
The Phucko Knows
Inflation is a normal process when demand exceeds supply. There are many reasons this can happen. And they do not all have to be man-made.
My point has nothing to do with the cause, but rather to say there is no magic solution. Demand and supply need to rebalance. This is a natural process that will likely take the time it takes.
So the Brandon recovery is too good. Gotcha.
Yes, but government action can impact both supply side and demand side. That’s what we are seeing. I know you need to “both sides” to the extreme, but don’t ignore reality. Things like pumping too much money into the system artificially jacks up demand. Failing to address supply chain issues impacts supply. Increasing interest rates impacts supply. Eliminating jobs through draconian measures impacts supply.
Minimal inflation is standard in a proper functioning economy. The huge inflation we are seeing now is the result of many artificial actions by government.
You’re confusing price increases for goods with inflation. Inflation only happens when the government increases the money supply. That’s the only cause.
Market mechanisms never address inflation, as you can see by looking at the steady decrease in the value of dollar over time.
Inflation is a market response to coercion. Fake legal tender drives out honest money, in effect enforcing Gresham’s law at gunpoint. In looter Newspeak that’s “putting teeth” into the law that punctures your throat. Cheap money buys fewer goods, or goods appreciate with respect to trashy scrip. A is A.
Your first post wasn’t that bad but then this one trampled all of it’s credibility. MINOR supply demand cycles can be said to be normal process; that vastly different than ‘fiat’ inflation of *all* at 7%.
You got it backwards: the only people who can cause inflation are politicians, and they can easily stop it by just not debasing the currency anymore.
Translation: pay no attention to that sound money party behind the curtain. It might cost The Kleptocracy some coercive power if voters learn about it. There are only Two Parties, and Allah is their Prophet!
“in conjunction with the enormous government debt and short-term financing”
so issue some century bonds. problem solved!
Stop spending like drunken sailors in a whore house.
Feature!
Then how are whores supposed to make a living?
,new study out of Columbia University says the Omicron variant is “markedly resistant” to vaccines and boosters might not do much to help, spelling bad news for the country as Omicron spreads and COVID-19 cases rise nationally.”
.HAHAHA LET THE FREAK OUT BEGIN.
Dumb bastard Biden demands you get a worthless vaccine.
Plus blood clots! No problem if you have Oblowhard Care bc that pays for everything with no rationing.
Win win?
“If We Don’t Get Inflation Under Control, It Could Unleash Some Dramatic Consequences”
Also, water is wet. And progshits believe in MMT, so where the hell do you think we’re going next?
When Democrats (Democrats President and Democrat majority congress) pitched and passed The Federal Reserve Act of 1913 and created “central planning” fiat money. It essentially created a ‘monopoly’ of citizen slaves. As that ‘fiat’ was UN-tied to real goods it entirely became the ‘monopoly’ of slaves.
Since then the Slavery-Nazi-Party (the Party of Slavery and National Socialism) has pimped out slaves for Trillions worth of ‘political’ agenda’s that didn’t mean SH8T to anyone but their own political ego’s and manipulation forces on it’s own slave-base (i.e. propaganda) which in turn deceitfully convinces slaves to WORSHIP their Nazi-Leaders.
Republicans use asset forfeiture as a Sin Tax/sacrifice to Yahweh to cast out Demonic Possession by baaad plant leaves. Wallace ku-klux Dems go along with the part that puts brown people in jail in hopes of bullying more girls and getting the Klan back in the fold. Both strangle us with taxes and their strategies destroy wealth, cause capital flight, contraction and liquidity crises doused with debt and paper scrip. But Vero notices what? “But so far, there’s no sign of anyone willing to make the tough choice.” This is not true. In 2016 four million Americans voted Libertarian—against the IRS, inflation, pimping out the future of youth and robbing, jailing and shooting said youth to protect them against imaginary Demonic Possession. Our 4 million spoiler votes more than covered the popular gap between both looter parties. Instead of changing, The Empire Struck back by infiltrating the LNC and nominating committees and wreck our achievement–then turned social media into National Socialist censorship and muzzling tools. To help, volunteer for getting LP ballot access back.
An article I saw in the past month explained it a bit better. What we are seeing is government diverting money from profitable uses to ‘good’ uses, in the political sense. Our government is like many third world governments in making themselves dependent on borrowing more each year. Meanwhile the economy does ‘less well’ and lenders year on year have less that they can lend. The same goes for production. To the extent that government borrows from the private sector, or from China, they will have to pay higher interest to get from a smaller lending pool. To the extent government “prints” the money, they have not “printed” what money buys, and in fact the stock of what money buys goes down, so supply down demand up prices go up, continuing and worsening inflation.
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WE didn’t cause inflation. WE can’t get it under control. CONgress created the problem, only CONgress can get it under control. All spending originates in CONgress. Yet I doubt CONgress can get it under control, it the deficit is to large. The Fed and Treasury are out of tricks. The only way is probably default, and complete economic meltdown like the USSR underwent that brought Russia back again.
The US is not going away, but it will be much different country at that point. The only question to me is not if, but when?