Blah blah blah
Nobody knows what induces (not causes) inflation. The cause is obviously imagination of counterparties agreeing on higher price. But what induces the imagination?
There is a popular theory about money supply . . . “too much money chases too few products”. That’s another blah blah blah.
Then there is the “LAW” . . . we got taught it is a LAW OF NATURE that supply and demand determines price. Notice that does not involve money supply?
Except neither has direct control of human brains. Imagination of counterparties determines price. If there is no counterparty agreement, there is no transaction.
(Except, trashing another LAW OF NATURE that economics wants to believe in, the vast majority of goods changing hands of ownership in history has taken place via conquering nations, or inheritance or outright theft. Price didn’t decide any of that.)
Here is the root cause of inflation. It may not be apparent to the public, but on foreign exchange THEY KNOW.
Figures never lie, but Liars Figure.
When the US Fed Reserve starts taking lessons form Larry Fink at Blackrock, the house of cards will eventually collapse. Blow completely up.
How BlackRock Conquered the World (Sep 19, 2023)
https://www.corbettreport.com/blackrock/
I wish I understood your post. I just don’t. I don’t have a background in economics and you are probably touching on some common themes. But I don’t understand them. Can you assume I am dumb, not far off and explain like Walter Williams did.
Are you insane? Money supply causing inflation isnt a “theory” it is obvuous common sense, long known, long proven. Supply and demand yes is the ultimate issue. Im this case supply of money vs demand for goods! This IS an instance of supply and demand, i.e. the quantity theory of money.
“Nobody knows” what causes inflation? Maybe nobody knows what causes objects to fall from a height towards the centre of the earth either.
I think the OP isn’t focusing on the mechanics of hyperinflation. They’re instead offering a theory that retailers seem to be getting the public prepared for significantly higher prices. The example given is Walmart’s online grocery page, where you can see 16oz jars of peanut butter “marked down” to about $2 or $3, but the “original price” is supposedly more than $12 - for a single jar of peanut butter.
Are you an idiot?
Money supply enters that equation on the "demand" side. Without money, there is no demand. Increase the money supply, and more people will demand the product, since more people will have that extra money.