First, from one of the leading economists in all of human history: https://mises.org/mises-wire/what-inflation-really-means#:~:text=Ludwig%20von%20Mises%20however%2C%20held%20that%20the%20popular,the%20quantity%20of%20bank%20deposits%20subject%20to%20check. Inflation, as this term was always used everywhere and especially in this country, means increasing the quantity of money and bank notes in circulation and the quantity of bank deposits subject to check. But people today use the term ‘inflation’ to refer to the phenomenon that is an inevitable consequence of inflation, that is the tendency of all prices and wage rates to rise. The result of this deplorable confusion is that there is no term left to signify the cause of this rise in prices and wages. There is no longer any word available to signify the phenomenon that has been, up to now, called inflation.
You got that, goose steppers? Inflation is INCREASING THE QUANTITY OF MONEY AND BANK NOTES IN CIRCULATION.
Inflation is an increase in the quantity of money without a corresponding increase in the demand for money, i.e., for cash holdings.
Okay, class. (Assuming there's anyone here who made it to middle school status.) There is such a thing as the money supply. https://www.investopedia.com/terms/m/moneysupply.asp The money supply is the sum total of all of the currency and other liquid assets in a country's economy on the date measured. The money supply includes all cash in circulation and all bank deposits that the account holder can easily convert to cash.
(You uneducated goose steppers probably never heard of this.)
Sudden increases in the money supply without production leads to INFLATION.
If the money supply increases faster than output then, ceteris paribus, inflation will occur. If a government prints extra money, households will have more cash and more money to spend on goods. But, if the amount of goods stays the same, the extra cash will just cause firms to put up prices.
But several experts blamed Biden's own actions on the persistent inflation levels. They noted that he has pushed several massive spending packages, namely the American Rescue Plan and Biden's $1.9 trillion COVID-19 stimulus package which have sunk the nation deeper into debt. "Of course, you're going to have inflation when Congress and the president are signing trillions of dollars in new spending and, again, pushing up annual deficits to $2 trillion a year. This is textbook expansionary fiscal policy. The harder the White House hits the gas on fiscal policy, the harder the Fed is going to have to hit the brakes on monetary policy. That just means higher interest rates and more pain for a lot of families."
Bottom line, corporations are PHYSICALLY UNABLE TO CREATE INFLATION. They do not have the keys to the US Treasury.
If you can't understand this, you're a moron. Please don't reproduce.
To bring to young skulls full of mush up to speed on (a) the significance the money supply has on the value of the dollar and (b) how far back IGNORANCE of this simple fact goes for most Americans, we need only look at the first major oil shocks around the early 70s.
Yes the controlled media tried to say that the world was running out of oil. That was supposed to explain the skyrocketing gasoline prices and the long gasoline lines. (Might have been nice to have a FoxNews for back in those days.)
"The Seven Fat Years" by Wall Street Journal editor Robert Bartley explains what happened.
Nixon took the world off the Bretton Woods Gold Standard. OPEC begged him not to do it, warning that oil was indexed to the value of the dollar. To those here who may have spent their first 10 years in public school with their fingers up their noses, the RESERVE CURRENCY of the world is the American Dollar. This is the reason why Americans aren't paying $10 a gallon for gasoline like a lot of European countries.
Oil was never in shortage. It was being traded in American dollars, with an ignorant liberal American president who didn't know his ass from a hole in the ground. And because oil was such an important commodity, it touched off other items which fed the high inflation that plagued the American economy in the later 70s.
You kids weren't alive when any of this happened so you wouldn't know. The liberal Ford presidency had a campaign called WIN (Whip Inflation Now) which was pretty useless at the time. Sure enough, there were PSA's on TV blaming the AMERICAN CONSUMER for being "piggy." They showed photos of pigs and tried to claim people spending money were the cause of inflation.
It seemed like nobody understood the meaning of the term "Inflation" until (a) Milton Friedman's "Free To Choose" was published, which educated MILLIONS on the facts and (b) Ronald Reagan completely rescued the economy using the policies of some of the greatest free market economists of all time.
Reagan cut spending and cut taxes. He cut regulation. The economy SOARED. Inflation practically disappeared.
There is nothing to spin about those events. They are factual and they are relevant, WHETHER YOU LIKE IT OR NOT, goose steppers.
You liberals need a LOT of reading on this matter because you are childishly trying to spin the very simple concept of the definition of inflation. Makes me wonder if any of your diplomas are worth the paper they are printed on.
Oh, by the way. Just in case some of you have never tried to spend a Jamaican dollar or a Trinidad dollar, you probably do not understand the importance of a national currency. Jamaican dollars aren't even worth a sheet of American toilet paper. The reason for that was that third world shithole borrowing money from the International Monetary Fund. Every time that happens, the country's currency goes into the shitter.
Same thing happened in Trinidad. I learned this from a few friends I have who were from that country. They explained what happened.
A country's currency and its value represent its life blood. The major difference is the American dollar is the reserve currency of the world. If you think Roosevelt screwed the American economy with his socialist New Deal racket, you ain't seen nothing yet.
World War II was partially a result of the hyperinflation of the Weimar Republic.
Horrible things can happen when the currency is messed with.
You have done your homework. Very good.. And you quote Friedman on this. Also good.. So lets pick that apart. As a Free marketeer, Friedman is theoretically quite right, which makes you correct. However, where the wheels come off is that free marketeers assume the playing field is level and that all operators are open and honest, with no bias shown. Thats the problem with economics in the field, There is always bias. More that hals the board of the Fed are former Goldman Sachs people. This provides a bias to the finance industry and Goldman sachs istelf. And a bias away from long term management of the nation in favor of the balance sheet this quarter. And thats inherently bad for the country ..And the Feds answer to dilution of the money supply by printing more was to print even more, when fiscal restrant and higher taxation of those who had more was the other option. And the corporate world responded by borrowing heavily and getting into unsustainable debt, Because, well "why not?" Interest rates were near zero. Lets party!😷
@whowasthatmaskedman Where is Jewish Space Lasers coming from? Never heard that. Sounds like something a raghead Hamas supporter would spew. As far as the Obama virus goes, here's the documentation. https://www.foxnews.com/politics/us-funded-research-create-mutant-viruses-wuhan-lab-ahead-covid-19-records-show
One primary cause of inflation that no economist knows is CASH. Once cash is eradicated there will be no stash or unaccounted money. Also there is no report of cash overseas especially USD as it's become a parallel economy. So it becomes easier to mint more dollars to provide liquidity and dilute the value. Each time they mint cash, they rob money from our wallets.. which is the intrinsic value of money.
Morons are those who keep money in the bank and imagine their wealth, while the money gets rotated as many times increasing the cost of living of our future.
If all decide to cash out at once is when they would go bust. There must be an annual cash out day to make the fictitious money fall which will lead to deflation.
This is funny, at so many levels, but primarily because you just cooked up a batch of word soup, that's going to give indigestion to anyone with a couple of firing neurons, because it contradicts itself, all over the place.
Not to mention your firm belief that capitalization makes it true. It doesn't.
Reminder: having, allegedly, taught typing to kids, does not make one an economist.
is is funny, at so many levels, but primarily because you just cooked up a batch of word soup, that's going to give indigestion to anyone with a couple of firing neurons, because it contradicts itself, all over the place.
It's just pure economics. It's just FACT. There is ZERO contradiction here. The definition and cause of inflation are very clearly laid out, (for someone with an education.
Reminder: having, allegedly, taught typing to kids, does not make one an economist.
I taught keyboarding classes (around 1999 they didn't refer to it as typing) to young college students, not to children. And that fact is irrelevant to this economics treatise, (that apparently no left winger here has ever heard of before.)
Caps is not a substitute for facts. The sun rises in the East, the swallows returned to Capistrano, and the Alps are awesome, all facts, none make up a treatise of any kind.
If inflation is a bonfire, the money supply is the pile of dry firewood. That wood pile has grown under every single presidential administration of our lifetime. The torch that set the current blaze was Biden shocking the oil supply in the US with EOs shutting down the XL pipeline and new drilling leases. Last time we had a comparable inflationary state was under Carter in the late '70s...and an oil supply shock ignited that fire as well.
So you are blaming the stimulus checks and programs that started under Trump (the ones he insisted on signing) and then continued by Biden to get us through a time of crisis for raising prices? Don't worry, I didn't get any of that money because my income was high enough to not qualify.
Why don't you mention the inflationary impacts of having nearly free credit for years on end? Available money supply has been increased far more by fractional reserve lending and near zero interest rates than it has been covid relief. The difference with credit vs. printing is that with credit, someone is eventually left holding the bag and needing to pay back money that doesn't exist.
@Reason10 good ol trump continued the scam of FIAT. Shall we just ignore the trillions printed on his watch? Doesnt matter who you pick, red or blue, the scam still continues. If you pick either side you are consenting to this system of daylight robbery and the red and blue parasites that manage said system
