During the upcoming election season, the over/under on how many erroneous causes are ascribed to inflation is 50. Take the over. Meanwhile, decent economists like Daniel Lacalle will toil on in obscurity. From Lacalle at dlacalle.com:
The Fed’s preferred inflation measure rose 2.8% in March from a year ago. This is the core personal consumption expenditures price index, excluding food and energy, which should be less volatile than the consumer price index and a better indicator of the real process of disinflation.
This figure is not only concerning, considering the propaganda that repeats that the fight against inflation is nearing its conclusion, but it becomes even more so when we observe the upward trend over the last three and six months. Inflation has accelerated on a quarterly and half-year basis.
As E.J. Anthony, PhD economist, points out, “there was never any indication we were heading to the 2.0% inflation target, let alone the pre-pandemic 1.8% average; we’ve arrived at 3%+ with no indication we’re going significantly lower anytime soon, not with the current levels of Treasury borrowing and Fed allowing money supply growth.”
We need to understand why inflation is not falling as promised and announced.
There is no such thing as cost-push inflation
Fiscal policy has been reckless, and enormous deficit spending is fueling inflationary pressures through unnecessary government consumption of newly created currency.
Government spending is printing new units of currency and inflation is caused by issuing more than what the private sector demands, thus making the purchasing power of money decline.
There is no such thing as cost-push inflation, greedflation, or commodity inflation. None of those factors can make aggregate prices rise, consolidate, and continue increasing on an annualized level.
Furthermore, if cost-push or supply chain disruptions were the cause of inflation, we would have deflation today, not rising aggregate prices every month.
Governments created the inflation burst of 2021 and have not only ignored fiscal responsibility but, in the case of the United States, maintained a completely unhealthy and unrequired budget deficit.
But their portfolio never gets hurt and insider trading is legal for them?
Some pages are saying 1929 style is just around the corner thanks to the private banking cartel federal reserve’s mismanagement.
Not Sure but the preps are stacked deep and one page says that you better have two years worth of food and water!
The city says we own the local creek when asked about cleanup of illegal dumping, these terms are acceptable.