Posted on 12/26/2022 5:16:10 PM PST by SeekAndFind
Inflation is always and everywhere a monetary phenomenon, as Milton Friedman, the economist and intellectual author of the Reagan Revolution used to explain.
Which means that when Federal Reserve prints out more cash to shell out for bigger and bigger government programs, look out.
Inflation is on the way.
Don't take this from me, this time. It's now what one of President Obama's top economic advisors is now warning as Joe Biden gets ready to sign the $1.7 trillion Omnibus bill passed by Congress, including 18 skeevy Republicans:
On Friday’s broadcast of MSNBC’s “Morning Joe,” Steve Rattner, who served as counselor to the Treasury Secretary in the Obama administration, stated that fiscal policy, like “the federal budget deficit, as well as various other things that the White House can do, have been mostly going the wrong way.” And the omnibus bill will lead to “more inflation, not less inflation.”Rattner said, “Well, unfortunately, the policies outside of the Fed’s regime, which are basically what we call fiscal policy, the federal budget deficit, as well as various other things that the White House can do, have been mostly going the wrong way. This omnibus bill that will get passed presumably today, the $1.7 trillion spending bill, does increase the deficit more. It spends more, and all of that actually creates more inflation, not less inflation. The President’s student debt relief plan, whatever you think about the merits of canceling student debt, economists will tell you, it does add to inflation, because it, again, puts more money out in the economy and gives people more to spend.”
This would be the same Rattner who engaged in all kinds of mischief during the Obama years as Obama's "car czar," crafting the automotive industry bailout at what was then seen as an astronomical $82 billion
(Excerpt) Read more at americanthinker.com ...
Almost correct. You forgot the interest part. And who owns the “Federal Reserve?”
Thanks.
Right after those shovel ready jobs from 2009 show up.
You’re welcome. I never understood “The Fed” until I watched that video.
>Biden and the Media are going to blame the Republicans
Likely they’ll attack the House.
I’ll bet that Osama Obama is glad that The Big Guy is President. It means that *he* is no longer the worst President in history.
You know this country is in a mess when Jimmah Carter isn’t even mentioned.
We will show the Argentinians they might win the World Cup in football but we can beat them in inflation!
“Ready for more inflation?”
Dem voters, fresh from their boost of the Biden Administration policies in the Senate takeover:
“Golly, count me in. I want to grab more inflation with both hands and come back to vote Dem again.” 😜🤪
The part of the 1.7 that is more than last year would be inflationary. Constant spending levels are not—unless contraction is a lot worse than it has been.
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The Fed did start raising too late, but congress is wasting (and grifting) money so fast these days the Fed can’t catch up.
Your Senators and Representatives will still be rich after this cycle, but most citizens will be worse off.
I think that was the entire point of the bill - stepping on the little people as usual
Unfortunately, lots of Elephants joined in the rape-fest.
This Bill is the nail in the coffin.
Its private...and they want to keep it that way! ... and JFK was probably killed for EO 11110 ... Do your own DD...
Compounded borrowing to pay the higher interest that they previously borrowed to pay is economic suicide. It’s called a J-Curve.
Inflation is strongly influenced by the printing of money as they cannot borrow more.
Know that.
Unless the tax receipts grow enough to cover the debt service.
That happens through economic growth or tax increases.
I am not saying that huge annual deficits are not adding to the debt problem. I am merely saying that constant spending that is marginally higher than the last period is not going to cause hyperinflation.
But we all know by the end of next year there will be calls for stimulus. That is the spending that drives serious inflation.
It’s like we have an inflation smorgasbord ~ multiple helpings—all we can take :(
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