In the conservative press I keep reading that this inflation is from Biden. Biden is trying to say that it is the result of Putin and the disruption of petroleum resources. I can't imagine that Joe doesn't have somebody who can tell him the real story, but he wants to play this for popularity - apparently only short-term popularity - so he says this Putin thing to get the heat off.
I think it's worse than this, just because I believe in economies responding only very slowly. The inflation we are seeing is the stimulus check money and the rescue of many businesses. That is on a lot of people, but Donald Trump has to figure prominently in that. Also, supply chain costs gradually coming due.
That means the inflation from the Russian invasion and the inflation from the nightmarish Build Back (Trillions) Better, which, ahem, doesn't actually build very much, hasn't even hit yet. That is still to come.
4 comments:
Monetization of the debt (ie, money printing)
Biden admin's war on fossil fuel energy
Supply chain constraints
Domestic production constraints due to insufficient workers who will take jobs
Longer-term factors:
Productivity constraints due to increasingly-poorly-educated populace
Direction of investment $ into politically-favored areas rather than economically-productive ones
Inflation that we are now experiencing is from Quantitative Easing. The scam the American Fed has foisted on the world is coming apart.
I have been amazed at the amount of inertia in financial markets, and as the American government was actively debasing their currency, have some money, and all the rest in silver and gold.
The harder the crash, the better I will do. Its not something I like much, but I have children and will prey on the weak as this falls apart. My daughter needs a house.
Putin just pushed the broken toy off the cliff. ;)
I too am surprised we didn't see this years ago when the coiners started in earnest. But money is trust, and I guess there was enough residual trust to keep people wanting dollars.
I have a one million mark note from my grandfather (Post WWI German hyperinflation). It used to be there was enough past experience with the wealth destruction of inflation to make it a political issue. Calvin Coolidge where are you?
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