Posted on 09/27/2023 5:28:24 AM PDT by MtnClimber
The federal government, under both parties, has printed trillions of dollars to fund its “stimulus” packages and other projects. This spending greatly increased during the COVID era. Basic economics teaches that the government printing press is not only the cause, but the very definition of inflation. Over the past 30 + months, prices of all consumer goods have risen dramatically. Real estate has achieved similar highs. Prices have appeared to stabilize only after action by the Federal Reserve system to restrict the money supply. The supply of money has been the key both to inflation and to its temporary taming.
Of course, raising interest rates is not the real solution. Only the end of government printing would stop inflation.
Government and its media operatives have, as usual, attempted to confuse the issue. The administration and its corporate media sponsors have blamed Russia, COVID, the “supply chain” and other irrelevant targets. They even passed the Inflation Reduction Act, which promises to reduce inflation by providing, among other items, even more government spending. The administration refuses to credit the Federal Reserve for the monetary restrictive measures, preferring to credit the counterproductive measures in the Inflation Reduction Act. But those spending measures in the Inflation Reduction Act appear to be rekindling inflation again.
Throughout history, governments both small and large have addressed inflation with irrelevant and counterproductive measures. Price controls have been imposed by everyone from Roman Emperor Diocletian to President Nixon to modern Venezuela. Weimar Germany’s hyperinflation led to the collapse of that government and aided the rise of Hitler. Hyperinflation was replaced by war and destruction. Argentina’s inflation rate reached 1,000 or more percent in the 1980s -- as that once-thriving democracy became a military dictatorship with a devastated economy.
(Excerpt) Read more at americanthinker.com ...
I wonder if interest on the debt will ever start to limit new government spending or will the printing presses continue until we become Argentina?
“Inflation is always and everywhere a monetary phenomenon.”
— Milton Friedman
“Inflation is caused by too much money chasing after too few goods.”
— Milton Friedman
How inflation reduces the cost of paying off debt…….
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Good article. The first paragraph says it all.
It government spending money they don't have.
“Where does all that money come from, Mr Answers?”
“Why, Jimmy, when government prints money there is inflation always following behind and so that money comes out of my savings and your piggy bank and Uncle Sam doesn’t have to even dirty his hands anymore to tax us but can simply take the value of our money and use it to buy votes and keep people in Congress.”
....it’s government spending ‘money’ that does not exist...
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