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The nature of the stimulus itself doesn't matter. What matters is the total size. The money always ends up leaking into commodities until the economy chokes. T
by fny 4y ago
The nature of the stimulus itself doesn't matter. What matters is the total size. The money always ends up leaking into commodities until the economy chokes.
Trump spent way too much money, and then Biden spent even more. We had $1T of debt, Trump spent another $1T, Biden spent another $1T. This alone justifies a doubling/tripling of prices everywhere which is exactly what you're seeing.
Wheat has tripled. Natural gas has tripled. Oil has doubled. Copper has almost doubled. Corn has doubled. Soybean has doubled.
We need the government to take money back however it can right now to control inflation. The US government needs to use taxes to buy back its debt and drain liquidity from the market. But of course, they're just going to keep spending more in response to inflation (gas stimulus checks, tax cuts, home buying credits), which is even more inflationary.