Posted on 04/11/2022 9:24:49 PM PDT by SeekAndFind
The government could bring in good policies if it wanted to, it just doesn’t want to.
It has to get worse anyway. You can’t halt inflation without precipitating a recession.
Damned if you do. Damned if you don’t.
Being retired with zero debt, I guess I won’t suffer as much as Joe Sixpack who has three kids and a mortgage.
They have to take back the free money
Ping.
Take another look at that Economics textbook.
PROCON
Ping.
Ping to post # 4.
Add one full point to the Fed Funds Rate every quarter, and liquidate Fed assets in a year.
Inflation stops. Right there.
And the economy crashes hard.
That is a good and necessary thing.
Crash landing. Conflagration. New, green shoots.
“The government could bring in good policies if it wanted to, it just doesn’t want to.”
It’s impossible to get elected with good, sane monetary and fiscal policy.
Impossible.
It’s definitely hard to overcome a greedy electorate, who cares nothing about the consequences on children.
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The progressive Income Tax put inflation on steroids.
A “tax and spend” regime has absolutely no incentive to restrain inflation and every reason to accelerate it.
Increase the supply of fuel, fertilizer, and food and inflation will decrease.
You’re right on that.
That’s the trouble with the idea of one time overspending, it becomes an addiction.
It would take a culture of self denial to fix things and I don’t think there are enough people with those kinds of gonads.
The idea is to inflict as much pain and misery as possible. They have virtually zero interest in “fixing” anything.
We are being punished.
An important reason that severe inflation did not occur between Jan 2000 and Jan 2020 is that every consumer now has instantaneous price discovery and product comparison via the Internet.
Inflation in that 20 year period averaged slightly above 2% per year.
Commodity shortages and supply chain disruptions have brought that 20 years of financial peace to a quick and bloody end.
Also, the USA Federal Reserve and other central banks are now using a new financial weapon - quantitative easing.
In its simplest terms, QE is when the Fed starts buying corporate bonds.
Because the Fed can print as much money as they like, the Fed can artificially push down business interest rates by under-bidding all the other corporate bond buyers.
Debt sellers compete for the lowest interest rates, which means that the Fed stimulates business borrowing (and business spending) by reducing business interest rates.
Bernanke implemented QE, starting in 2009.
“Increase the supply of fuel, fertilizer, and food and inflation will decrease.”
You are mixing demand/supply price issues with inflation. If the US overnight cranked up 500 oil and gas wells and oil dropped to $20 a barrel, and the price of all those things cratered, then monetary inflation maggically got solved? No, only the demand/supply issues got solved.
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