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.
This page is a permanent link to the reply below and its nested replies. See all post replies »
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.
