false

 

 prophets of media anybody?

Why is inflation still so high right now, and when can we expect it to finally stop?

"U.S. inflation "has slightly eased for the second month in a row", reaching 8.3% in August. This is the lowest figure in four months, preceded by a 40-year high of 9.1% earlier this year.

(Starting off with spin right off the bat. Its down .8% from a 40 year high, celebration time everybody!)

"But what's really causing prices to rise to rise in the first place, and what will it take to make it stop?

What are the causes of inflation?

There are four general causes of inflation. The most commonly recognized causes are:

demand-pull inflation

cost-push inflation

built-in inflation

The fourth cause is an increase in the money supply, due to the Federal Reserve printing more."

(We continue with more spin as the main reason for inflation is listed last. Do you really think that this is an accident? And it wasn't just printing $, it was the purchasing on mortgage backed securities (recently halted) that injected "liquidity" into markets that shouldn't have been there. You do what I do, for long enough, you see the spin clear enough.)

"Does an increased money supply induce inflation?

There is debate on whether the Federal Reserve printing out more money may or may not cause inflation.

Powell still believes that inflation and the money supply are unconnected but he has fierce critics who think otherwise."

(The Fed Chairman is a lawyer, and an investment banker not an economist...opps)

"Steve H. Hanke — a professor of applied economics at Johns Hopkins University — stated the money supply is growing 13% annually."

(I'm not sure but I believe that is the guy I was referencing when I did the piece on "M2, lumber prices and taco bell" how said he thought the fed had lost control of the $ supply. To much of anything, even $, lowers its worth.)

Until the pandemic, supply hadn’t grown that much since the late 1970s. Hanke also said that even if the Fed acts swiftly to slash that increase in half, annual inflation will top six percent through 2024.

However, the Feds increased the money supply by over 120% in 2008/09, and the increase did not cause inflation.

(I've said this on here before when talking about the difference between Friedman and Keynes monetary policies. Both were somewhat right. You can increase the $ supply to a point with lil or no ill effects, but after a tipping point has been reached? Like we had with Covid and our response to it? Look out, and that is where we are today.)

"However, some critics claim that while the stimulus bills were necessary, they have contributed to the inflation we know today."

(Yup)

And this also explains why some economists believe that inflation is the result of a monetary policy.

(Yup)

“Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output,” the late economist and Nobel prize laureate Milton Friedman once said."

(I told my buddy Saturday sarcastically: "Inflations peaked". Another individual that overheard launched right into Biden...This is why I live in a garage. ITS AN INTERNATIONAL THING! MOST ALL COUNTRIES RESPONDED IN THE SAME MANNER! IT"S WHT WE ARE IN THE BOAT WE ARE IN RN! THERES NOTHING ANYBODY CAN DO TO STOP IT! UNDERSTAND WHERE WE ARE AND WHERE THIS IS HEADED FOR GOODNESS SAKES!" I just look at people with that kinda response and think..."I'm not even gonna try and explain it to you, not everything that is going on is isolated to this country and the blue/red divide and the divide and conquer media.)

"Why is inflation so high right now?

The main causes of the current inflation in the U.S. is the persistence of supply disruptions and shortages of food products, which began with the pandemic. Additionally, inflation is also affected by the higher energy prices."

(100% spin and 100% Wrong! The main cause of inflation is the creation of to much $, the $ supply has been "inflated", the other factors they list are auxiliary and not the main causes. It's going to be persistent for the foreseeable future because of the increase in the $ supply!)

"When will inflation go down?

Overall, the August results show that prices have started to decline in key areas, such as gas or airfare, probably indicating that inflation peaked. However, the underlying issues causing this inflation haven’t been solved yet."

(Oh boy..."prices have started to decline in key areas, such as gas" Am I the only one alive who knows that the drawdown of the SPR ends here in about six weeks? Then what happens to your energy prices going into winter?

"...the underlying issues causing this inflation haven’t been solved yet." Yeah, no kidding, there's to much $ in the system yo.)

As I like to say...these people...my goodness...

Godspeed everybody.