Inflation is printing money. Rising prices are a consequence of inflation.
When the Fed printed money under Trump, it was always going to raise prices. There was never a situation where it would not cause a price raise.
The fact that the Democrats are refusing to blame Trump for inflation because of his money printing, tells you how much money printing they are planning on doing.
It’s a double whammy. Biden’s energy policy would be jacking up prices even without printing money. Pretty sure they’re using the inevitability of “printing inflation” to mask or obscure the effects of his green new deal. It’s a diffusion of responsibility.
Biden’s energy policy would be jacking up prices even without printing money.
Yeah, I don't disagree. The decision to support socialist regimes in South America and Africa by importing their populations (and thus reducing the pressure on their welfare states), and the decision to intentionally buy more energy resources from them instead of producing our own (increasing their state's income), was done with the sole purpose of supporting ideological allies and political dependencies abroad, rather than benefiting the people of the US.
Pretty sure they’re using the inevitability of “printing inflation” to mask or obscure the effects of his green new deal. It’s a diffusion of responsibility.
The "Green Energy" stuff is just a money for political allies who otherwise produce nothing of value.
Inflation isn't really there to obscure any of this, as the primary goal of the inflation is to centralize enough of the asset wealth of all citizens around the world into the Fabian Socialist financial order, and then use the resulting economic crisis of runaway inflation & recession as a "Breton Woods moment" to declare a new economic order is necessary. This moment will be used to introduce a new digital currency and end cash deposits & exchange. The digital currency will be tied to the surveillance state & a social credit system to control the economy as directly as possible: The Cashless Hell World.
You better damn well believe that the phrase "Cash based currency promotes disease transmission, so banning it will help protect our health!" will be used.
Yeah inflation is terrible right now and will likely get worse but its nowhere near the realm of 100% gas inflation in 1.5 years. Most of that is on Biden's shit policies.
The FED is doing something interesting. They are actively crashing the stock market (very slowly) as a mechanism of reducing the effects of inflation. By increasing interest rates, they are attempting force the stock market to lose value. That means literally everyone's savings & retirements are going to lose value. They are hoping that this will cause prices to drop without actually doing any deflation of the currency.
What normally would have happened is that people would have been spending money faster and faster in order to replace their cash with assets, and that also means flooding the markets with money as well, because cash is worthless, causing a "Melt-up" rather than "Meltdown" of the economy as hyperinflation begins to kick in.
Instead, Bret Johnson appears to be correct about the "Dollar Milkshake Theory" and the FED seems to be counting on it. In order for foreign countries to pay off their US debt, they need US dollars. Also, in order for them not to lose their entire life's savings in other countries, US bonds look like a better investment because they don't have a negative interest rate.
This actually means that although the US economy is in fucking tatters, and inflation is very bad, the US dollar has strengthened with respect to other currencies because the Fabian Socialist financial order basically built the system to protect itself.
And to a macro-economic bean counter, maybe this doesn't look like a catastrophe because if you manage to strengthen the dollar, it won't matter that inflation is high. But that doesn't change the fact that the real economy, not the currency market, is still in absolute peril. Inflation doesn't just cause price hikes, it also causes all the shortages and over-supply's we are seeing that are also causing price hikes. Everyone printed money, so the inflation can't actually be countered, even if the dollar is getting stronger, because the only way to make the dollar that strong, would be to cause deflation, and pop the everything bubble. The Central Banks know that they can't actually deflate the currency, they explicitly said they couldn't in 2019.
Hyperinflation isn't around the immediate corner (within 6 months), but there's a huge problem at play. Back in 2020, I was concerned it might have been. However, the digital currency's biggest advantage is that it actually can allow for permanent hyper-inflation, by making "helicopter money" absolutely normal for all people at all times. It's where Stimulus Checks and Universal Basic Income are actually pushing us. The government can guarantee votes by literally bribing it's constituents with printed money, and as the money wildly inflates, you just change how you measure the money. Instead of having 100 bucks, you have 10 decabucks. Instead of having 100 decabucks, you have 10 centibucks, so on and so forth.
So, as people still grapple with inflation, they are going to start putting more and more of their money in assets that will have value that appears to be perpetually increasing. "Why should I have $10 in my pocket that will be too worthless to spend money on, when I could buy a 2x4 that will keep increasing in price?" As that happens, monetary velocity will increase (meaning people will be spending thier money like crazy), and that will cause the hyperinflation as more people spend more money, and spend it faster, so that they don't lose any value, making the money more and more worthless. It will be at that point the need for a digital currency will be argued by the Central Banks, who can use a digital currency to mask inflation permanently, in exchange for your immortal soul freedom.
I don't exactly know how all of this is going to play out, but I can't imagine inflation going away any time soon.
This is the top post for a reason. The printing presses never stops. It’s just assumed they are running 24/7/365 in overdrive & accelerating. This will destroy the economy. Even one as big as ours.
but another way to look at it is that 100 USD-1933 has lost so much purchasing power that $100 USD-2022 is worth 4.67 USD-1933.
And to be clear, that loss of value was done on purpose by the government who has not has been intentionally printing more and more money perpetually since basically that year.
Not to mention if their minimum wage hikes go through, the cost of goods will go up while all non-minimum wage salaries stay the same, essentially making people working in real jobs poorer.
Honestly, I don't think a minimum wage hike is going to do anything. Lowest wage I've seen is $10 /hr with commission. No one is offering $7.50 /hr because there's such a labor shortage that they have to raise wages.
Thing is, the only way those wages are going to raise is through competition, and businesses potentially closing because they literally can't fill positions. Normally, that would be okay to workers, but the labor force participation is way too low. And I don't know if you've seen the quality of the low level people who are prepared to participate in the economy, but it's pretty shit tier. There are, somehow, still a ton of people who left work in 2019 and still haven't come back. Likely because those people are still being supported by the welfare state, and aren't willing to work 40 hours a week for $15 /hr, when they could be paid the equivalent of $12 /hr to do whatever they feel like.
This means that wages will rise, but only after more people have to quit their jobs and go to other places because the financial pressures on them are so heavy. Worse, no one will be able to replace the jobs they leave. Wages might raise, but the abnormal trade-off here is that business will close before anyone will replace them.
Yes, wages will raise, but they won't raise in time with inflation, and it won't help that a huge swathe of the population aren't employed anyway.
I've been talking about this too, the inflation absolutely began under Trump. So the dems have an out, just call it Trump's inflation and say we have to ride it out. The fact they don't do this makes me think they actually believe in MMT and don't understand what inflation actually is.
MMT claims all inflation is merely price gouging. Lo and behold, there are now ads popping up talking about 'greedy merchants' jacking up prices for no reason. This is exactly what happened in Venezuela.
They won't admit to it, but they absolutely believe in MMT. And they know it's price gouging, and they are prepared to drone strike people who won't support them.
The whole point of the digital currency is to make MMT possible, because they think hyperinflation can be ignored by just adding a zero every so often to everyone's account.
Inflation is printing money. Rising prices are a consequence of inflation.
When the Fed printed money under Trump, it was always going to raise prices. There was never a situation where it would not cause a price raise.
The fact that the Democrats are refusing to blame Trump for inflation because of his money printing, tells you how much money printing they are planning on doing.
It’s a double whammy. Biden’s energy policy would be jacking up prices even without printing money. Pretty sure they’re using the inevitability of “printing inflation” to mask or obscure the effects of his green new deal. It’s a diffusion of responsibility.
Yeah, I don't disagree. The decision to support socialist regimes in South America and Africa by importing their populations (and thus reducing the pressure on their welfare states), and the decision to intentionally buy more energy resources from them instead of producing our own (increasing their state's income), was done with the sole purpose of supporting ideological allies and political dependencies abroad, rather than benefiting the people of the US.
The "Green Energy" stuff is just a money for political allies who otherwise produce nothing of value.
Inflation isn't really there to obscure any of this, as the primary goal of the inflation is to centralize enough of the asset wealth of all citizens around the world into the Fabian Socialist financial order, and then use the resulting economic crisis of runaway inflation & recession as a "Breton Woods moment" to declare a new economic order is necessary. This moment will be used to introduce a new digital currency and end cash deposits & exchange. The digital currency will be tied to the surveillance state & a social credit system to control the economy as directly as possible: The Cashless Hell World.
You better damn well believe that the phrase "Cash based currency promotes disease transmission, so banning it will help protect our health!" will be used.
Yeah inflation is terrible right now and will likely get worse but its nowhere near the realm of 100% gas inflation in 1.5 years. Most of that is on Biden's shit policies.
So what you're saying is that hyper inflation is right around the corner.
Sort of?
The FED is doing something interesting. They are actively crashing the stock market (very slowly) as a mechanism of reducing the effects of inflation. By increasing interest rates, they are attempting force the stock market to lose value. That means literally everyone's savings & retirements are going to lose value. They are hoping that this will cause prices to drop without actually doing any deflation of the currency.
What normally would have happened is that people would have been spending money faster and faster in order to replace their cash with assets, and that also means flooding the markets with money as well, because cash is worthless, causing a "Melt-up" rather than "Meltdown" of the economy as hyperinflation begins to kick in.
Instead, Bret Johnson appears to be correct about the "Dollar Milkshake Theory" and the FED seems to be counting on it. In order for foreign countries to pay off their US debt, they need US dollars. Also, in order for them not to lose their entire life's savings in other countries, US bonds look like a better investment because they don't have a negative interest rate.
This actually means that although the US economy is in fucking tatters, and inflation is very bad, the US dollar has strengthened with respect to other currencies because the Fabian Socialist financial order basically built the system to protect itself.
And to a macro-economic bean counter, maybe this doesn't look like a catastrophe because if you manage to strengthen the dollar, it won't matter that inflation is high. But that doesn't change the fact that the real economy, not the currency market, is still in absolute peril. Inflation doesn't just cause price hikes, it also causes all the shortages and over-supply's we are seeing that are also causing price hikes. Everyone printed money, so the inflation can't actually be countered, even if the dollar is getting stronger, because the only way to make the dollar that strong, would be to cause deflation, and pop the everything bubble. The Central Banks know that they can't actually deflate the currency, they explicitly said they couldn't in 2019.
Hyperinflation isn't around the immediate corner (within 6 months), but there's a huge problem at play. Back in 2020, I was concerned it might have been. However, the digital currency's biggest advantage is that it actually can allow for permanent hyper-inflation, by making "helicopter money" absolutely normal for all people at all times. It's where Stimulus Checks and Universal Basic Income are actually pushing us. The government can guarantee votes by literally bribing it's constituents with printed money, and as the money wildly inflates, you just change how you measure the money. Instead of having 100 bucks, you have 10 decabucks. Instead of having 100 decabucks, you have 10 centibucks, so on and so forth.
So, as people still grapple with inflation, they are going to start putting more and more of their money in assets that will have value that appears to be perpetually increasing. "Why should I have $10 in my pocket that will be too worthless to spend money on, when I could buy a 2x4 that will keep increasing in price?" As that happens, monetary velocity will increase (meaning people will be spending thier money like crazy), and that will cause the hyperinflation as more people spend more money, and spend it faster, so that they don't lose any value, making the money more and more worthless. It will be at that point the need for a digital currency will be argued by the Central Banks, who can use a digital currency to mask inflation permanently, in exchange for your
immortal soulfreedom.I don't exactly know how all of this is going to play out, but I can't imagine inflation going away any time soon.
It's a little scatter brained, but it's hard to explain without going into a ton of detail on each subject.
It's like trying to explain the whole Ukraine-Trump-Clinton-Biden-Russia-Email thing all at once.
This is the top post for a reason. The printing presses never stops. It’s just assumed they are running 24/7/365 in overdrive & accelerating. This will destroy the economy. Even one as big as ours.
This is why I like constantly going back to www.in2013dollars.com
Besides showing how much old USD would be worth in new USD, it also shows you how much purchasing power the USD has lost over time.
Below is a comparison between 100 USD-1933 in USD-2022
https://www.in2013dollars.com/us/inflation/1933?amount=100
100 USD-1933 is worth 2,223.92 USD-2022
but another way to look at it is that 100 USD-1933 has lost so much purchasing power that $100 USD-2022 is worth 4.67 USD-1933.
And to be clear, that loss of value was done on purpose by the government who has not has been intentionally printing more and more money perpetually since basically that year.
Not to mention if their minimum wage hikes go through, the cost of goods will go up while all non-minimum wage salaries stay the same, essentially making people working in real jobs poorer.
Honestly, I don't think a minimum wage hike is going to do anything. Lowest wage I've seen is $10 /hr with commission. No one is offering $7.50 /hr because there's such a labor shortage that they have to raise wages.
Thing is, the only way those wages are going to raise is through competition, and businesses potentially closing because they literally can't fill positions. Normally, that would be okay to workers, but the labor force participation is way too low. And I don't know if you've seen the quality of the low level people who are prepared to participate in the economy, but it's pretty shit tier. There are, somehow, still a ton of people who left work in 2019 and still haven't come back. Likely because those people are still being supported by the welfare state, and aren't willing to work 40 hours a week for $15 /hr, when they could be paid the equivalent of $12 /hr to do whatever they feel like.
This means that wages will rise, but only after more people have to quit their jobs and go to other places because the financial pressures on them are so heavy. Worse, no one will be able to replace the jobs they leave. Wages might raise, but the abnormal trade-off here is that business will close before anyone will replace them.
Yes, wages will raise, but they won't raise in time with inflation, and it won't help that a huge swathe of the population aren't employed anyway.
I've been talking about this too, the inflation absolutely began under Trump. So the dems have an out, just call it Trump's inflation and say we have to ride it out. The fact they don't do this makes me think they actually believe in MMT and don't understand what inflation actually is.
MMT claims all inflation is merely price gouging. Lo and behold, there are now ads popping up talking about 'greedy merchants' jacking up prices for no reason. This is exactly what happened in Venezuela.
It's going to get hella worse.
They won't admit to it, but they absolutely believe in MMT. And they know it's price gouging, and they are prepared to drone strike people who won't support them.
The whole point of the digital currency is to make MMT possible, because they think hyperinflation can be ignored by just adding a zero every so often to everyone's account.