| I appreciate your sources. They point to many effects people feel. The big I Inflation is being driven by one thing: An increase in the money supply. The Fed did that. I’m not arguing the morality of it. It’s what happened. Do we agree the Fed printed more money? The way the fed combats that decision to increase the money supply is an increase in the interest rate. Do we agree that the way the fed decreases the money supply is raising interest rates? Everything you point to, all of the sub effects and greed, are because more money exists in the system now. People are spending $7 on eggs instead of EA games because of the egg co’s greed, but that greed is fueled by more money existing now. There is some “natural” higher price that I’m sure you and I could agree on because more money exists and we both agree — some companies are being greedy. That’s not the cause of Inflation. If the fed were not raising the interest rate, businesses would not be under the pressures they are to work differently. Some businesses don’t need to raise prices but are being greedy. Others can’t survive so they are making changes to attempt to survive. You: look at all these businesses that are making decisions that are making inflation harder felt for no good reason! It’s greed! Me: yes, they are being greedy. The only reason they can attempt this is more money exists. The fed will slurp that money back up by raising the interest rates and we are all left to pick up the pieces. My premise: if the fed keeps raising rates, that it will have continued deeper effects on more businesses. Do you agree? (And my follow up premise: the fed have to raise interest to fight their prior money printing but if you disagree with that I’m really interested in learning how you think the Fed solves it.) Or are you still convinced it’s just greed? (I agree greed is a factor, but that’s a result of the feds actions, not the root.) https://fred.stlouisfed.org/graph/?g=11EzJ - money supply. Notice it starts shrinking Mar ‘22 https://fred.stlouisfed.org/graph/?g=11EzX - interest rates. Notice it start’s materially raising Mar ‘22 |
https://www.pbs.org/newshour/show/why-corporations-are-reapi...