Posted on 10/19/2022 10:07:31 AM PDT by JV3MRC
A Johns Hopkins University economist wasn’t having any of has-been comedian Jon Stewart’s gaslighting over the true source of America’s inflation crisis: a drastically inflated money supply.
Economist Steve Hanke joined the Oct. 19 edition of Apple TV’s The Problem with Jon Stewart and didn’t mince words. “Inflation is always and everywhere caused by one thing: too much money. Period,” Hanke said. “That’s the end of the story. It is simpler than you think.” Stewart immediately tried to retort with pseudo-economic reasoning: “I’ve read studies that contradict that, but I don’t know.” Hanke didn’t waste time rebutting: “Whatever you’re reading is rubbish.”
(Excerpt) Read more at newsbusters.org ...
S+acy Abr@ms said it was because people aren’t having enough abortions. C’mon, Democrats, get it together!
That title is just lol funny.
LOL
Inflation is always and everywhere a monetary phenomenon. #MiltonFriedman
https://www.youtube.com/watch?v=F94jGTWNWsA
And didn’t Stewart, a self anointed voice in first responders/military members getting the medical attention they deserve, go absolutely apoplectic when a few in Congress dared to question some of the math?
What’s your theory on what is causing inflation?
Yes, an excess of money (currency) supply is an important part of inflation. However, without the presence of a key catalyst, there is no significant inflation regardless of the volume of supply or printing. And that catalyst is the velocity of money (currency). Velocity is an indication of the loss of public confidence in the currency. And when that confidence is lost, people want to get rid of their currency in exchange for hard assets. That’s the recipe for inflation and certainly hyperinflation.
I like Stephen Moore and he basically states it’s the same thing. Too many dollars....the printing presses working overtime.
Stewart should read up on the Weimar Republic and Zimbabwe, both are prime examples of governments printing their way into an inflationary crisis.
If the US money supply is the cause of inflation, why is there inflation in the rest of the world as well? If you look at the actual M2 Fed statistic it has been flat since February 2022 so why are prices still increasing?
Some inflationary periods are caused by Federal spending that exceeds the productive capacity of the real economy causing people to chase scarce goods.
In 2020 the government shut down much of our productive capacity for COVID while increasing the money supply dramatically to pay workers to stay home. This disrupted the supply chain artificially and drove up prices on goods that were scarce. Current inventories are at record levels and these goods will have to be discounted by retailers to clear their shelves which is deflationary. The Ukraine War and Biden’s energy shutdown drove up fuel, fertilizer, and food costs world wide adding to the inflation.
Bottom line, not all inflation has the same causes and the monetarists are fighting the last war with the only weapon they understand, crush wage earners and drive up interest rates. Its a cruel mistake.
What makes you think that Europe isn’t over spending like The States?
Welcome to Freerepublic.
What do they call it when people hoard currency waiting for the deflationary cycle to purchase hard assets at lower prices?
“Why is there inflation in the rest of the world as well?” Because THE REST OF THE WORLD IS DOING THE SAME THING AS THE IDIOTS IN THE XIDEN REGIME AND THE FEDERAL RESERVE.
I like this guy Hanke.
Stewart’s a moron. He says he has read studies where if the money supply increases by 5%, and you don’t always get 5% more inflation.
Well yes, that is true IF the economy’s productivity rises at the same time as the money supply is increased. It’s printing money faster than productivity is increasing that drives inflation, and the professor is right, any study that doesn’t take that into account is total rubbish.
This is interesting and I was just reading about an argument that this is bunk (the velocity of money). Let me find it and post it.
“What do they call it when people hoard currency waiting for the deflationary cycle to purchase hard assets at lower prices?”
Historically, your bank shuts down and you can’t get access to your deposits.
It happened in the late 1830’s when banks wouldn’t redeem their bank notes for specie.
It happened in the early 1930’s when a bunch of banks went under. My great grandfather got back ‘8 cents on the dollar’ from his bank.
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