Until the sheeple recognize the root cause of inflation, the Fed has free rein to go on debasing the currency into perpetuity.

https://i.redd.it/90889uhval8g1.jpeg

by Key_Brief_8138

31 comments

  1. If that dude has been working for 50 years, he probably has a house and stock investments that went to the moon. Those are the kinds of people that saw the most benefits from the situation.

  2. Don’t forget in February 2021, we reconciled a $2T stimulus (9% of GDP). Then 16 months later we had 9% inflation

    Funny how obvious these numbers are making it

  3. Corporations have the ability to inflate through credit creation. So… it isn’t just the FED’s fault. Corporations should take up a huge portion of the blame.

  4. I don’t remember house prices being particularly affordable before that.

  5. PPP was basically giving every business owner a free downpayment to bid up property. 

    The existence of new money is impossible to avoid. The question is always about distribution. 

  6. I mean, this graphic assumes you were holding cash. . .but sure. If you are an idiot this happened to you.

  8. Imagine them creating a system where your retirement boosts the stock market but they make it so you’re hardly surviving so you can’t put much into that retirement (for the majority of people).

  9. It’s not the feds fault. The White House is supposed to look out for the little guy. I think that did a fairly good job and it’s not really their responsibility to keep asset prices down for people. I think some local governments did a good job keeping housing affordable while others didn’t

  13. Tell me you have taken Econ 101 and then stopped, without telling me you took Econ 101 and stopped.

  14. If u own a home then price going up is good. Inflation is a weapth transfer from poor to rich

  15. They should have taxed it back into manageable levels and held people accountable for their loans.

  16. No. This isn’t correct. The govt, not the fed, handed out checks. This is wrong thinking.

    Housing prices went up due to people buying 2nd homes and renting out their primary. This is now in reverse. The housing supply will increase as people sell their Airbnb and 2nd homes. Boomers are retiring and dying. Our pop has been very steady for last ten years

  17. Some people forgets who was the president in 2020 

  19. That’s certainly one contributing factor of thousands over the past five decades or so causing an affordability crisis.

    See also:
    – Loopholes for monopolizing and centralizing corporations
    – repealing or allowing loopholes for oversight and accountability
    – stagnant minimum wage
    – wage gap
    – tax gap
    – tax exemptions and subsidies
    – indefinite tax deferment
    – citizens united
    – perpetual growth market instead of a free market

  21. „Maintaining structures..“ – excellent take. I feels like the shift has been to digital fluency over the physical one, at least for the past 2-3 decades. Learning to maintain anything in the physical realm seems to have become a lost art, almost a luxury or an extracurricular learning path or activity.

  23. We had an affordability crisis long before that. The problem is that we don’t build enough homes where they’re needed.

  24. 1 month old account that’s just spamming stuff like this…..confidence is not high for a good faith actor here.

    Anyhow….I’m just not buying the money printing thing. Yes it has an effect. But I’m sorry the economy and pricing is far more complex than it to be money printing.

    Imo it’s mostly price fixing. Mostly starting with the oil industry and then it just moved through everything else.

    Additionally it’s because they had an excuse to do this because of covid. The supply chain got screwed. So supply was drastically cut. This means that in the US economic system prices are supposed to go up, which they did. But then the supply chain got fixed, which means prices are supposed to go down, which it largely did not. Corporate America raised prices, saw that the public would stomach it, and thus went with that.

    The GOP loved to blame Biden for this and they love to claim money printing. But the fact of the matter is they themselves were pushing a graph that showed prices of everything had risen about 20%…but oil has gone up 40%. The price of oil going up means the cost to produce goes up.

    Tldr the price of good goes up and down for a lot of reasons but in sorry I don’t believe you when you claim it’s money printing. It’s just good old corporate greed and price fixing.

  27. why do you keep 20 year of work in cash stacked under your mattress?

  28. So many different ways of saying stupid things about the money supply and inflation in these comments. Economics has to be the premier topic for the Dunning-Krueger effect.

  30. Let me explain how inflation works. It is compilation of answers to other people, so it may look strange.

    To increase inflation you have to spend all your money on retail market, as we are talking about retail inflation. Usually state prints money to cover the cost of inflation. So inflation comes before the printing. And what causes inflation is disbalance in supply and demand, in most cases caused by economic growth, or imported goods. So Trump’s tariffs or attempts for such can disrupt import chains and to cause inflation. Outside US – and this is the most common reason for hyperinflation, the outflow of capital, that causes fast devaluation of local currency against US dollar.

    Milton Friedman theory, which also has Nobel prize, has one enormous issue – to cause inflation money has to be spent. More money means nothing, if people do not spend more and in crisis usually they don’t. Pumping money does not lead to any inflation. What governments usually do is not printing money, but encouraging people to spend more with lower interest rates, so speed up money flow. As demand supports economic growth, but also inflation.

    As for the capital outflow – Weimar republic, all Eastern European states in 90s, Argentina and etc. It is not about investors. It is above all about foreign debt. An issue US do not have, as their debt is in US dollars. But take Argentina, they have to pay interest and expiring debts, nobody wants to lend them US dollars, they cannot print such, so the state takes the dollars from the economy. But import companies, private foreign debt, energy utilities – all need dollars. That is why the value of the local currency collapses. That has nothing with printing money. Well it has, as after the value of the peso collapses, the state has to print more pesos to cover the government expenses.

    With economic growth demand rises, so the inflation. If the price of core minerals, or foods increases that also can cause inflation. Which is the case with crude oil. But that is also caused by supply and demand, not by printing money.

    And about foreign debt – take any case hyperinflation in last century, and this will be the cause.

    If we take Roman empire, there were hyperinflation, literal printing of money, devaluation by less gold and silver in the coins, no foreign debt or import of core minerals like crude oil. So at the first side that covers the Friedman’s theory.

    But actually it does not. The hyperinflation in ancient Rome was caused by imbalance in supply and demand among Rome and the periphery of the empire, and wars, as the wars caused collapse of supply of many goods. As a result the empire was forced to print money.

    If Friedman was right, inflation and printing money would be in constant loop. As the state prints money, that causes inflation, then the state needs more money and etc. The world ends. It is so obviously wrong that it is mind-blowing how that became the main theory and got Nobel prize.

    Inflation never occurs because of the money. Never. And the main issue with Friedman’s theory is math. It simply does not work. See GDP is calculated minus inflation for a reason. If you take Friedman’s theory into account, that means printing money is reducing the GDP. Which is beyond absurd.

    When you say inflation, the economic term is inflation of retail prices. Indeed higher wages usually increase inflation as they lead to more demand, so bigger disbalance with supply, and this is the main reason for inflation. But more demand, also means need of more supply, and with higher prices that leads to bigger profits for the companies, more tax revenues and etc. So this is not some spiral of doom.

    Usually inflation is caused by economic growth, as then demand rises faster than supply, by the simple reason companies need time to make and deliver any product.

    Deflation happens when there is general decline of demand. So companies are forced to reduce the prices, but that means they earn less money or even lose money. So less jobs, less investments, economic decline. Lower prices are good thing for the customers. Deflation is bad for everyone. In the general case demand is always slightly bigger than supply, we are talking about all goods and services on the market combined, so there is constant inflation except in periods of economic crises.

    Why disbalance in supply and demand causes inflation? When demand is higher, sellers can increase prices and actually make sales on the new prices. But they can do that also when they have monopoly or oligopoly.

    And here is another case. Every competition has winners. When companies compete for bigger market share, they reach the point, when free market share left does not worth the cost. So they simply start to raise prices, as this is the only way to increase the profit. And that is going till some new regulation, crisis or innovation disrupts the market and restarts the competition.

  31. Yep literally printed half of all dollars I’m extistence, in like 2 years 🤦🏻‍♂️.

    Then Jerome Powell spent that time saying inflation was transitory.

    Then 4-5 years later our economy is absolutely fucked.

    Another gift from the boomers, pump up
    Their retirement and be dead by the time inflation comes around.

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