Inflation Explained to the Ignorant

Phoenix AZ

Description

On March 27, 2020 Trump signed the $3.8 Trillion CoronaVirus Aid and Relief Economic Security (Act). The C.A.R.E.S. Act. All of it was unearned printed paper or fiat money. President Biden signed the $1.9 Trillion Economic Recovery Stimulus Act in 2021. Again, all was unearned printed paper fiat money. And let's not forget that both Republicans and Democrats in Congress both approved these bills before they were signed into law. A total of $5.7 Trillion of unearned and unborrowed fiat money, in a year, pumped into the economy to get the US through the worst of the pandemic. So... Trump is responsible for approximately 2/3’s of our current inflation, and Biden approximately 1/3’d. When America stops printing fiat money, inflation will subside. All the non-fiat money price increases occurring since then are the result of supply and demand issues mostly, but not entirely, brought on by the Covid pandemic. The lack of smooth predictable distribution of goods due to the truck driver shortage (long in the making before the pandemic) are supply and demand related, NOT inflation related. Separate Inflation, the devaluation of each dollar by printing more unearned dollars, from price increases due to supply and demand. Also, the current invasion of Ukraine by Russia (Russia being the largest producer of oil in the world) and related possible sanctions of Russia, are responsible for some of the increase in gas pump prices. Since Russia invaded Ukraine we can expect $5+ gasoline until the Ukrainians patriots prevail, which is looking probable. The more gas and diesel costs, the more it costs to deliver goods to market. The sooner Biden and NATO defeat Trump’s war criminal “genius”, Putin the sooner fuel prices will drop. Additionally. The Federal Reserve is raising interest rates to blunt inflation. Historically, a 5% Prime Rate is a sign of a healthy economy. A 0% or 1% Prime Rate is a sign of a sick economy. Freedom isn’t free now is it?