I generally would agree with this but money is flowing into the safety of the us with the Russian insanity. Oil prices high. Money flooding into the us. Russia isn’t completely incapable.
Your logic is the same ridiculous Dem logic as “deficits can only be resolved with increased taxes”. So government policies retard economic output starting in March of 2020 while simultaneously trillions are pumped into the economy and you want to claim the supply is the culprit. Where is the demand you ask, then you use unit sales as your only measure. You are smarter than this nonsense city. And don’t point out the horsecrap about it being a global problem, so our government’s policies couldn’t be the problem. Just because other governments were as, or more stupid than us, doesn’t mean we haven’t been stupid for 2 1/2 years. I said here over two years ago that we would be dealing with the issues created by our foolish Covid policies for a decade or more. And yes, Trump was a fool too for listening to that moron Fauci and the media. Here we are about to hit year three and things do not yet show any signs of improving. Often laws of economics are just as real and harsh as laws of physics. For those who thought two years ago that deficit spending was not inflationary because it hadn’t caused inflation yet, yet is here with us now and we are feeling the love.
If your talking stimulus in direct payments to citizens yes it’s been given out, however there were trillions sent to state, local and federal programs, not even close to all of that has been spent.
A weird, additional reason why raising int rates can help curb inflation is b/c people believe it will curb inflation(that's what we are told). I suspect most have little appreciation for the HUGE role beliefs play in every aspect of economics (at its roots it's just about human behavior) I recently saw a poll that people expect inf to subside...that can reduce inflation. In fact, I put far more weight on that than anything wrt my thoughts about inf going down. If people (as they have over the last year) expect inflation, that belief causes inf...if the price is rising, buy now...buying now increases demand & hence inf. consider this. The Fed was freaked out for about a decade about DEflation. Why is deflation so feared....well, if people think prices are gonna go down in the future....?
Biden is making a huge mistake on growth. He'll pay for it in November if he doesnt keep the growth rate up. Inflation will address itself. People notice having a job way more than the price of stuff being 5% higher cuz inflation is 8% vs 3%.
Additionally its a worldwide supply problem. Tell me how US borrowing rates being too low are driving Singapore, India.. and all these other places inflation up. Inflation Rate - Countries - List (tradingeconomics.com)
What is interesting to me is how little they want to talk about the issues of the population. I'm guessing that is because it doesn't fit their political beliefs. But if you cut off immigration for a year in a population that is aging rapidly (2021 saw the largest increase in median age in the US since 2000, a period in which we have seen constant increases in median age), you end up with labor shortages. And they are fighting tooth-and-nail to stop from solving this problem, by increasing the immigrant population to make up for this shortfall.
There will be more coming. Their target inflation rate is 2%. We are 200% over that number still. Inflation will stay high because Obiden hates oil and oil production and spends money into oblivion. As I mentioned on here several times they are going to have to get the Fed's fund rate to 5.75% AND drill everything for oil. Until they do that this Marxist/Modern Monetary Theory will keep completely destroying our economy.
You do know that raising the Fed's fund rate take cash out of the economy which typically leads to a stronger dollar right? That's economics 101.
He's going to have to go Volker here, they waited to long in their "inflation is transitory" crap to prop up the Obiden regime. They are still about 6-8 months behind the ball.
I guess inflation wasn't transitory after all?......who knew? I mean besides the Too Hot posters who weren't following lock step with the Biden team politics.
