This guy is wrong. Whether he knows it or not, as unwitting dupe, or controlled opposition, he is pushing the Grand Illusion. Inflation was not a function of the American Rescue Plan, or any other spending bill. Inflation was a function of the M2 money supply.
It is simple Supply and Demand. If the money supply goes up, what we call "inflation" goes up; there is more money, thus the buying power of each dollar goes down. It's that simple. Because it takes a while for things to percolate a bit, it takes for about two years for inflation to adjust to fluctuations in money supply. This lag time helps feed the Illusion, but it is as regular as clockwork.
If you look at the graph (shown above), it shows without question that in Feb. 2020 the M2 money supply spiked faster than it had in modern history. The data gets a little difficult to show because of how these things work (real v. nominal data), but there has not been such a dramatic increase in M2 money supply since WWII.
The Fed determines inflation. All of our Policies are the theatre that lays on top of the actions of the Fed. If the Fed says "jump," public policy says "how high." It is all Theatre.
I'm not saying there is no interplay there. The Fed is more than happy to have their agents (called "politicians") give their pretense for the theatre. Then the Fed will create new money (debt) for the money laundering scheme that pretends to be "policy." But specifically in regards to the latest bout of inflation, the money printer went Brrr in Feb 2020. Most of the increase of money supply had already been starting to wind down by Jan. 2021, before the spending bill in question had happened.
The Fed is an autonomous agent (Sovereign entity). Because "money" uses Federal Reserve Notes, the US Government doesn't have the ability to determine the money supply. It is up to the Fed what happens. Anything else is Theatre.
This guy is wrong. Whether he knows it or not, as unwitting dupe, or controlled opposition, he is pushing the Grand Illusion. Inflation was not a function of the American Rescue Plan, or any other spending bill. Inflation was a function of the M2 money supply.
It is simple Supply and Demand. If the money supply goes up, what we call "inflation" goes up; there is more money, thus the buying power of each dollar goes down. It's that simple. Because it takes a while for things to percolate a bit, it takes for about two years for inflation to adjust to fluctuations in money supply. This lag time helps feed the Illusion, but it is as regular as clockwork.
If you look at the graph (shown above), it shows without question that in Feb. 2020 the M2 money supply spiked faster than it had in modern history. The data gets a little difficult to show because of how these things work (real v. nominal data), but there has not been such a dramatic increase in M2 money supply since WWII.
The Fed determines inflation. All of our Policies are the theatre that lays on top of the actions of the Fed. If the Fed says "jump," public policy says "how high." It is all Theatre.
I'm not saying there is no interplay there. The Fed is more than happy to have their agents (called "politicians") give their pretense for the theatre. Then the Fed will create new money (debt) for the money laundering scheme that pretends to be "policy." But specifically in regards to the latest bout of inflation, the money printer went Brrr in Feb 2020. Most of the increase of money supply had already been starting to wind down by Jan. 2021, before the spending bill in question had happened.
The Fed is an autonomous agent (Sovereign entity). Because "money" uses Federal Reserve Notes, the US Government doesn't have the ability to determine the money supply. It is up to the Fed what happens. Anything else is Theatre.
Werd ...
Thanks for saving me all that typing... beautiful job 👍🏻👍🏻👍🏻
Blame everyone but their masters at the federal reserve.