Posted on 07/10/2021 3:50:22 AM PDT by Kaslin
There seems to be a lot of confusion today about inflation. Pick up the paper or follow an internet site and you will read that the inflation rate this year is expected to be 2% or 3%. What they really mean is that prices are expected to rise 2% or 3%.
But is that inflation?
Inflation is an increase in the money supply. So why is the difference in definition critical? Prices rise because of inflation; they are the result of inflation but they are not inflation, nor are they the cause of inflation.
This is important because the government is the only one that can increase the money supply. This is done in a number of ways, but for the moment just think of it as printing more money. That is what countries have done when they ran out of money; they just printed more money until it came to the point where their money was almost worthless, where a wheelbarrow load of money would just barely purchase a loaf of bread.
Prices rise as a result of inflation. But if we just think of prices rising, we are apt to blame different vendors who we think are just getting rich off of circumstances. We recently had a gasoline shortage and politicians wanted to be sure that there was “no price gouging.” As prices rise, we tend to blame people rather than the government.
We have had a number of “gifts” from the government. The last one was $1,400 per individual, or $2,800 for each couple. But with more money in circulation, prices tend to rise. Thus, though all of us got the “free money” it is the middle to lower class who actually pay for that money in the rising cost of gasoline, food and other required expenses.
(Excerpt) Read more at americanthinker.com ...
The other question is if they even care about inflation.
Kamala under stands it.
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Marxist dogma is that a content people will never shift monetary system.
And they have the perfect stooge in Biden, who’s never had a real job in his life. It’s play money.
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As I explained to my brother you have 10 people making $10 each. You give each of them another dollar, a ten percent raise, but the value of all dollars go down in inverse proportion to the number of new dollars in the system. As a result all dollars are worth less and will not buy as much.
They don’t care. It’s a feature, not a bug. People need to realize the powers that be are bent on the destruction of the western way of life and destroying the buying power of the middle class is but one way to get their “fundamental transformation”.
The immediate and short-term benefits of inflation, to any command-and-control regime, are highly attractive and provide an easy answer to mere money problems. Debasing the currency always results in the same outcome, a steady and sometimes catastrophic erosion of the buying power of of the subjects of that regime, and eventual impoverishment of almost all of the population of the territory subject to this regime. A selected few become extremely wealthy because the control is concentrated into fewer and fewer hands, and this oligarchy can keep a stranglehold on everything else.
Until they no longer can.
That’s erection, not inflation.
When all that backs currency is faith in government, the government better be faithful to the principle of a stable currency. I don’t have much faith in a government that prints money, sends it to people who won’t work, and passes bills in congress with no concept of a debt limit. 23 trillion and rising!
I don’t think the regime currently cares about anything other than consolidating their total grip on power. The regime realizes that the greatest threat to them is that $10 loaf of bread. Biden/Uniparty, Inc. have no idea how to stop inflation and they probably don’t care. They do care about having a military that will suppress, with whatever means necessary, massive $10 loaf of bread riots. I think the plan is to have the rank and file in the military purged and indoctrinated before the regime is forced to turn the military on we deplorables and any hungry democrats who might take to the streets.
Everything the biden co dies.. everything the dems do.. and the media..
Are done via which dirty play they come up with.
When ya are that evil, ya never do the right thing..no, they decide which rat hole to use.
The inflation rate from 1788 until 1913: 0% more or less.
The inflation rate from 1913 thru 2021: 2619.1%
Source; U.S. Inflation Calculator
My only conclusion from this is, the Federal Government has been debasing our currency since 1913. Some administration have done a better job managing our money than others, but I doubt you can put any of the last 6 administrations in that category.
Some prices are way up, true. But other prices are down. Urban commercial real estate prices are probably down -- or they would be, if there were any buyers to be found. Long-term interest rates have been falling during the pandemic. And gold, the classic inflation hedge, is up only about $100 since late February 2020.
It is a tribute to President Donald John Trump that he remembered enough of his economics that the Chinese Communist Death Virus didn't cause a complete economic collapse with 50% unemployment.
"Does the Biden Administration Understand Inflation?". I don't think the Biden Administration has a clue as to what it is doing with regards to anything. Inflation, the Southern border, Afghanistan, skyrocketing urban crime. At first I thought that this was all a nefarious left-wing plan. Now I just think that they are idiots. Dangerous idiots, but idiots nonetheless.
I don’t think Jim Hollingsworth understands inflation.
Yes….. The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.
Vladimir Lenin
That was my first thought as well...and of course it doesn't matter to the Biden/Obama Admin. who have just one agenda.....sustaining their power now and in the future indefinitely at any cost.
That makes it sound like real wages can never rise.
Please explain if you are so smart.
Cumdump Kamala only understands a certain kind of "inflation" ... everything else not so much. (Cackle, Cackle, Cackle!!!)
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