Key inflation cause: Republican policy

[Mac1958]

1. Trillions in stimulus over 12 years.

2. A spike in demand following the lockdowns, leading to and exacerbating....

3. Collapsed global supply chains.

4. Inflation explodes and quickly feeds on itself.

5. A Fed that was VERY late to react.

That's what happened. In Normal World.

 

[Dragonlady]

You do cherry pick. Yes, things are better when there is a democratic president with a Republican Congress to keep their spending in check. But, it doesn't work when the democratic president has a democratic Congress. Then it is spend, spend, spend, no bar is too high.

What evidence do you have of this???? W crashed the economy after 12 years of a Republican Congress deregulating banking, while refusing to raise the minimum wage or mandate vacations, or maternity leave for working women, or universal health care.

 

[Orangecat]

I doubt your qualified to judge...

Your, you're, yore. Three words that sound the same but mean different things.

I assure you, if you want to turns this into a contest of literacy, I will skin you.

Lol.

 

[The5thHorseman]

Your, you're, yore. Three words that sound the same but mean different things.

Lol.

You should kill The Test...

 

[Orangecat]

You should kill The Test...

You should get your GED.

 

[The5thHorseman]

You should get your GED.

I doubt that's someplace you wanna go...

 

[Orangecat]

I doubt that's someplace you wanna go...

You excel at saying nothing, useful idiot.

 

[Dragonlady]

You should get your GED.

One of my teacher friends was being reprimanded by the parents of a boy in one of his English classes, for reducing their son's marks on account of his spelling and grammar. They considered these trivilities unimportant to their son's future on the grounds that his secretary will be responsible for those things.

My friend was a teacher at Upper Canada College. Only the little people need spelling and grammar Cat. And only a rude idiot corrects someone's spelling and grammar on the internet.

 

[Orangecat]

Only the little people need spelling and grammar Cat. And only a rude idiot corrects someone's spelling and grammar on the internet.

That's what illiterate imbeciles always say.

 

[The5thHorseman]

You excel at saying nothing, useful idiot.

Then proceed.

How do you wanna settle that?

Diplomas?

 

[The5thHorseman]

That's what illiterate imbeciles always say.

Given your limitations, I can appreciate your narrow focus.

Do you fashion yourself literate?

 

[Orangecat]

Then proceed.
How do you wanna settle that?
Diplomas?

Settle what? You babble a whole lot and say very little.

 

[Orangecat]

Given your limitations, I can appreciate your narrow focus.

Do you fashion yourself literate?

Yawn. Children looking for attention bore me.

 

[citygator]

those "who can most afford it" are already paying the vast majority of income taxes. half the country pays zero in income taxes, how about it everyone has some skin in the game?

Stupidest thing I read on here regularly. And that includes the vaccine nonsense.

 

[citygator]

1. Trillions in stimulus over 12 years.

2. A spike in demand following the lockdowns, leading to and exacerbating....

3. Collapsed global supply chains.

4. Inflation explodes and quickly feeds on itself.

5. A Fed that was VERY late to react.

That's what happened. In Normal World.

If #1 was a cause why did it wait until there was a supply shortage to impact inflation? My thought is that #1 is barely an impact and not a cause. Otherwise we would have seen it slowly rise over years not instantly when demand bounced back.

I’d also replace #5 with corporate profit taking. I think shortages and inflation was exploited by companies in the short term.

Rest I agree.

 

[The5thHorseman]

Yawn. Children looking for attention bore me.

Why did you come looking for attention?

 

[The5thHorseman]

Settle what? You babble a whole lot and say very little.

You struggle with context.
Not my burden.

 

[Mac1958]

If #1 was a cause why did it wait until there was a supply shortage to impact inflation?

That was the big mystery: "We're pouring all this stimulus into the economy, where is the mega inflation?" My clients asked me that daily. Turns out we were living on borrowed time. The only reason all those trillions didn't cause inflation sooner was because there was so much slack in the system, i.e., the lower and middle classes still didn't have the spending power -- until the shutdowns created massive pent-up demand as people had stopped spending.

What most people didn't realize -- and I sure as hell didn't -- was that during that whole time, supply chains were contracting and separating. Essentially decaying. So when this massive demand kicked in, the whole system collapsed. Then, far worse, it all fed on itself. Then, on top of all that, the Fed was timid about increasing interest rates for FAR too long.

I remember a lot of screaming about inflation when QE first kicked in, and we kept that hose on, all the way through Trump's term (and, of course, he asked for more).

 

[The5thHorseman]

That was the big mystery: "We're pouring all this stimulus into the economy, where is the mega inflation?" Turns out we were living on borrowed time. The only reason all those trillions didn't cause inflation sooner was because there was so much slack in the system, i.e., the lower and middle classes still didn't have the spending power -- until the shutdowns created massive pent-up demand as people had stopped spending.

What most people didn't realize -- and I sure as hell didn't -- was that during that whole time, supply chains were contracting and separating. Essentially decaying. So when this massive demand kicked in, the whole system collapsed. Then, far worse, it all fed on itself. Then, on top of all that, the Fed was timid about increasing interest rates for FAR too long.

I remember a lot of screaming about inflation when QE first kicked in, and we kept that hose on, all the way through Trump's term (and, of course, he asked for more).

But the entire point of the ongoing largesse, in my opinion, was to induce people to leave their homes to spend money....and this was a psychological resistance which in a pandemic environment was difficult to overcome.

So it was up to Helicopter Money...we might have stumbled through but for Pootie.

 

[Mac1958]

But the entire point of the ongoing largesse, in my opinion, was to induce people to leave their homes to spend money....and this was a psychological resistance which in a pandemic environment was difficult to overcome.

So it was up to Helicopter Money...we might have stumbled through but for Pootie.

A lot of it was, but a lot of it (QE) was meant to add liquidity to the system. So they were buying shit securities, bonds and even stocks (which blew my mind) just to keep the system greased and money moving. Our financial system essentially ground to a halt - that's why the Meltdown was so dangerous - and it took a LONG time for it to unwind. Those smaller "here's some free money" things were an inducement, but the big one, QE, was essentially a blood transfusion for a dying patient.