If the inflation is 8 percent for the year => the prices go up. Permanently.
Even if the inflation rate goes to zero for the next 10 years straight (which it never does), the prices still remain elevated at 8 percent. They NEVER go down.
This is why what BOTH Trump and Biden did during Covid was so deadly.
They just printed money. Gave away trillions. Expanded the money supply. I'm thinking they doubled the amount of dollars in circulation. YMMV.
By doing that immediately, but just briefly, everyone seemed to get by before the prices started to rise. WHILE the Biden Admin did the second part of the double whammy: SHUT DOWN the whole economy for two years.
The result is the hyperinflation we are seeing now.
I won't even talk about the illegal insertion of 20 million foreign hostiles to demand-push prices up, especially of low income housing, even more.
What you are seeing now was and is completely predictable.
The hyperinflation we are seeing now WILL NOT BE FIXED until we take up Milei/Argentine austerity measures. Read about Milei; he knows what he is doing. It may require financing from the World Bank or other agencies like it. It may require re-indexing the dollar 100-to-one as was done in France in 1960 and similar reforms with the German Currency Reform of 1948.
Trump and Congress need to STOP spending.
Trump is not the right guy to undertake austerity measures.
If I asked you, 'Who is the guy in the history of the whole human race who came back from the most extreme personal bankruptcy ever recorded, and survived it, ultimately becoming filthy rich again, as if it never even happened?' Would you say, DJT?
You would be right if you did.
So this guy in the WH, as nice as he is, may not be the best choice for restoring our currency. He believes in financial reincarnation, like a Hindu from Queens. He sees going bankrupt as a technique, a tactic, in organization of one's personal finances.
Real people don't have that option. They can't financially 'reinvent' themselves if their personal finances go bad.
Anyway the inflation we are seeing now is starting to make the agonal sharp turn upward and accelerating now to the point where it may not be recoverable.
Certainly if ANY WORLD ECONOMY is capable of earning its way and producing its way out of this mess, it is ours, BUT I would not be whimsical and careless and count on that happening.
We are in SERIOUS TROUBLE.
This may be one of the main reasons why the Communists have taken this particular time to become so hyperactive and vocal. They have masterfully executed Cloward-Piven and feel as if it may be time to strike.
Our inflation is a symptom only of a much, much worse, possibly terminal disease, in our economy. The end game is when our currency becomes worthless and the life's work of hundreds of millions of persons is burned up and rendered valueless as if destroyed in a forest fire. And that could happen as soon as within 12 months or less.
That is what we are looking at RIGHT NOW.
Things are going to start getting very non-linear very soon.
PS the key statistic is our Debt-to-GDP ratio, which is now 1.25 or 125 % or thereabouts, if I am not mistaken. Get on Google and Wiki and see how many countries on earth are at that level or higher. It's not many. Google about what happens when that ratio gets much higher.
Then look at Congress, and see what they are doing to lower that ratio. You will be disappointed, but not surprised, to find out that they are completely IGNORING this and not even talking about it. They shout down and ridicule anyone who brings up the issue.
I also think doing tariffs during a bad economy was NOT a good idea, I know NOTHING about economics but one of the main reasons why Trump won again was because people wanted a return to what they had in his first term, a thriving economy. Yes he did tariff, but only China, he didnt tariff the world. I think he should have waited for the economy to improve before imposing tariffs, I know its his favorite word but we end up paying the cost of those tariffs
Check the inflation numbers in 1979 vs today.
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