I should like to point out something, y’all.
Printed money from QE is a substance created from nothingness. It represents nothing, particularly, beyond value imagination in counter parties.
But to believe this is the source of inflation gives it too much attention. May I point out the QE magnitude that took place from 2009 to 2020. Trillions upon trillions.
Inflation was sometimes below 0%. The printed money was there, but inflation was 0% or lower.
Only beginning last year did inflation appear. Globally. This did not happen from QE. QE had been going on globally for a decade.
What caused it now? The best answer is “I don’t know”. I just know what didn’t.
What caused it now? The best answer is “I don’t know”. I just know what didn’t...
I think it was separating money from work which is the way we handled the Covid nonsense. We just gave away money while people sat on their rear ends.
Always before, even though QE existed, we gave lip service to the pretense that work was required for income.
I don’t know either, but I never believed inflation was any where near 0% during the QE years 2009-2020. I don’t know how they cooked the figures but my daily needs (food, utilities, travel etc) went up by 5-10% pa consistently through that period - even while returns on savings, pensions etc were practically zero.
It happened and is happening due to supply chain issues. This is why we will not overcome this inflation cycle with interest rate hikes. Instead those actions will crash they system and cause everything to freeze-up.
If the fiat currency cannot be converted into tangible assets, inflation will continue. We do not hear much about the supply chain at this point as it has become “common,” to see empty shelves of this or that, no chips for cars, no feed for farm animals, worldwide droughts, China’s no-covid lockdown policy. Tangible assets in this case are your everyday common items, not the gold or silver. Sucking the fiat currency out of the system doesn’t resolve the supply chain problems, it makes things worse because there is no capital to produce.
It really is simply about supply and demand. When there is little supply to meet demand, the price inflates.
The Fed and government are tackling the wrong thing with interest rates hikes. In the post-covid year(s), we should be moving to shore up our economy with production and bringing it back home. Oddly enough if you think about it, this is what President Trump was doing. He understood the fragile global supply-chain. Covid revealed many production weaknesses in our own national safety. Everything from the electronics we use to the medicines we need and the food we eat.
Produce the oil
Produce the energy
Produce the rice
Produce the wheat
Produce the chickens and process them in the United States
Produce the corn
Produce the computer chips
Stop complaining about the inflation and start asking why it exists. Why are the price of eggs so high? Why is milk so high? Why is gasoline so high? Why is diesel so high? The answer to all of these questions is the broken supply chain.