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2. is wrong, we had years of central banks money printing without inflation, recovery from Covid19 and the war are the reasons of this high inflation. Actually
by albertopv 4y ago
2. is wrong, we had years of central banks money printing without inflation, recovery from Covid19 and the war are the reasons of this high inflation.
Actually Fed real error has been raising rates to counter an inflation not caused by monetary policies.
SVB put all their investments in one bucket and it has been a very poor decision, really a rookie one
- refurb 4y agoInflation started going up before Covid and the war in Ukraine. Saying “the central bank printed money for years without inflation” as proof it’s not the cause is like saying a gas leak didnt cause the explosion because it’s been leaking for years.
- NotACop182 4y agoLots point to Covid-19 ppp and spending to be the cause of inflation. When the majority is supply chain and corporate opportunist. Great interview with Jon Stewart ad fed chair here: https://youtu.be/tU3rGFyN5uQ https://youtu.be/tU3rGFyN5uQ
- aaa_aaa 4y agoThis is false. Just look at amount of money pumped, it is easy to see the skyrocketing line in graphs. It is not the only but the main reason of inflation.
- ironic_comment 4y ago[dead]
- somenameforme 4y agoHere [1] is a graph of inflation. We've had increasingly accelerating inflation, especially since 1971 [2]. That's the end of Bretton Woods, or the date that the USD became completely unbacked by anything - enabling the freedom to arbitrarily "print" money. In more recent times, even more rapidly accelerating inflation began in July 2020, shortly following the $2.2 trillion CARES act from late March 2020. The "transitory inflation" narrative would begin in early 2021. The war in Ukraine began in February 2022, and doesn't even register as a visible data point in terms of rate change. [1] - https://fred.stlouisfed.org/series/CPIAUCSL https://fred.stlouisfed.org/series/CPIAUCSL [2] - https://wtfhappenedin1971.com/ https://wtfhappenedin1971.com/
- Aunche 4y ago>Here [1] is a graph of inflation. We've had increasingly accelerating inflation, especially since 1971 [2]. That's the end of Bretton Woods, or the date that the USD became completely unbacked by anything - enabling the freedom to arbitrarily "print" money. You have it backwards. Ending Bretton Woods didn't cause inflation. Inflation caused the end of Bretton Woods. If you zoom into the period before 1971, you still see plenty of inflation. If the government wants to stop its deficit that forces it to "print money", it needs to stop its deficit. Forcing the government to give a fixed quantity of a shiny yellow metal in exchange for a green piece of paper isn't going to help with that. All that does is ensure that the government will instantly give up all of its shiny yellow metals.
- Marazan 4y agoCPI in 1947 = 21 CPI in 1972 = 42 25 years to double. CPI in 1980 = 84 18 years to double CPI in 1999 = 168 19 years to double 24 years later is still hasn't doubled again. It's hardly a runaway freight train compared to pre 1971 is it?
- thworp 4y agoYes and now look at indicators that aren't susceptible to manipulation by a government agency and are more favoured assets by the institutions who get the money first. That would be real estate in major markets, stock market price/earnings, luxury goods. Those increased by a substantially larger margin.
- matwood 4y ago> Actually Fed real error has been raising rates to counter an inflation not caused by monetary policies. When all you have is a hammer...