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> Massive government spending, funded by new money, caused inflation. How is US government spending causing 8% inflation in Germany? It's almost like this is
by mullingitover 4y ago
> Massive government spending, funded by new money, caused inflation.
How is US government spending causing 8% inflation in Germany?
It's almost like this is a global phenomenon caused by supply shocks and price gouging of essential commodities.
- thoughtstheseus 4y agoInflation can be caused by more than one factor…
- SantalBlush 4y agoBut that's not really what you wrote, which is what people are pointing out. >Massive government spending, funded by new money, caused inflation.
- vimy 4y agoThe ECB printed money too.
- WalterBright 4y agoGermany deficit spends, too.
- orwin 4y agoFrance deficit spent more than germany, and have lower inflation figure. Someday, people will understand that central banks issue less than 8 percent of the circulating money, and that government debt is just another way of financing retirement pension funds.
- WalterBright 4y agoThe US did not have inflation when it did not have fiat money. There's well over a century of monetary history in the US without fiat money.
- craftsman 4y agoThat's true in exactly the way that disproves your point. Prior to the Federal Reserve era, there were so-called non-fiat currencies, that is, those convertible to silver or gold. Except when they weren't. There were many notable periods of inflation and deflation, and many periods during which convertibility was suspended. So only in the most narrow sense is it even possibly true that "the US did not have inflation when it did not have fiat money": if you ignore the times when convertibility was suspended, it becomes a slightly more accurate statement, but still not true as it ignores inflation soon after the founding, large deflationary periods in the early and late 1800s, and subsequent inflationary periods prior to WW I. So you have to ignore convertibility suspension and the inflation and deflation in order to argue that there was no inflation or deflation. The one iron-clad law of "non-fiat" currencies: eventually they will become fiat currencies.
- WalterBright 4y agoAnd when they weren't convertible to gold or silver, they were inflated. This amply proves my point. The inflation was a net zero from 1800 to 1914.
- mullingitover 4y agoFrance is looking pretty smart for going so hard into nuclear power. Conversely, Germany stepped on an energy policy rake.
- aeternum 4y agoIt's quite likely that energy prices are the common denominator. Energy inflation is off the charts and is an input to pretty much every other good.