Quote:
Originally Posted by bahbahmickey
What caused supply chain issues = huge parts of economies were shut down.
What was a massive cause of oil prices going up = then candidate Biden’s promise to aggressively attack non-renewable energy.
Lol at saying printing literally 3x the normal rate of money doesn’t have a major long-term inflation problem. Money doesn’t get zapped out of an economy if you don’t drastically reduce money printing going forward.
Baham …..oil prices are high because Russian war and the lack of refineries .
You can expand or increases any oil rig you want it won’t change a freakn thing if you don’t have enough refineries to process it …
It’s the world market that set up oil price , not freakin biden administration ffs …..
About supply of money, do u disagree that velocity of money play a part in inflation ?
It’s in the algebra formula of Milton Friedman.
https://fred.stlouisfed.org/series/M2V
Velocity of money is at all time low still , which means this inflation is far more likely due to supply chain issue and oil price and not due to « money supply » .
Again , Interest rates going up ( worst crash in bond market for the last 200 years means nothing to you ?) and still inflation goes up ?
Why u think that is when rising Interest rates means a reduction in money supply ?
https://www.investopedia.com/ask/ans...tral-banks.asp
« Changing Short-Term Interest Rates
The Fed can also alter the money supply by changing short-term interest rates. By lowering (or raising) the discount rate that banks pay on short-term loans from the Federal Reserve Bank, the Fed is able to effectively increase (or decrease) the liquidity of money.
While the Fed can directly influence a market rise, it is more commonly held accountable for market downturns than it is lauded for upswings.
Lower rates increase the money supply and boost economic activity; however, decreases in interest rates fuel inflation, and so the Fed must be careful not to lower interest rates too much for too long ».
The fed doing QT ( quantity tightening ) , raising interest rates and still Inflation went up while stock and bond market are crashing since the beginning of the year ?
Explain that to me why inflation still persist after all of these measures if it’s not due to supplie shock ?
Am I saying the money printing we had had no effect ?
No but it is far less likely the reason we still suffer Inflation today
compare to the reasons are already gave u .
If it was due to solely money supply , stocks would go way up like they did in 2020-21 .
Last edited by Montrealcorp; 08-07-2022 at 12:09 AM.