Posted on 03/19/2021 2:27:23 PM PDT by fruser1
As long as banks can make loans, the Fed’s initial increase can finally increase the money supply many times over.
The large final increase in the money supply should be inflationary. That wasn’t the case 10 years ago. From 2010 to 2018, the Dodd-Frank bill placed severe restrictions on bank lending, which reduced the multiplying effect. That could be the reason there was no inflationary impact.
But parts of Dodd Frank were repealed in 2018, so now there should be a greater multiplying effect, likely contributing to inflation.
Rising energy prices, a rapid growth in the money supply, huge government budget deficits and a potential capital shortage all point to a future inflation problem.
Those who support MMT have reached conclusions that are simply not accurate. Continuing to print money and continuing to deficit-spend do have consequences. The first consequence is rapidly rising prices. I am afraid that is coming.
(Excerpt) Read more at newsmax.com ...
Where I’m at homes are being sold in days, sometimes hours, not weeks. Its a buying frenzy. Prices are rising accordingly.
At the rate we’re going there won’t be a middle class. Its already disappearing.
You just figure this out?
I was being ironical.
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