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Rascal Nick Of's avatar

The Federal Government economists are ideologically blinded (though I will not call them morons). Here's some comments I posted at Mark Waulk's 'stack:

I’ve been gently trying to explain that the expanding money supply while bad, is only one aspect of the inflation equation and that gas prices are actually MUCH more important. Can you imagine what inflation would be if gas was $1.50/ gallon? Basically there wouldn’t be hardly any.

Yes, the consumer price hit at the pump is clearly very bad, but the reality is that fuel is a major input in the consumer cost of food. High inflation due to money printing would be a demand-side problem (too many dollars chasing too few goods - but if people save the money, the prices of goods would not rise...), which is a small part of the problem we have. We have a far more serious supply-side problem (due to energy costs and supply chain restrictions), and the inelasticity of demand (people HAVE to buy food, and a few other key items, basically regardless of the cost) is a far bigger reason for the rising prices.

If the money supply expands, but people don't spend it, inflation would be very low (they would save the money and if demand does not increase, prices won't either). People HAVE to buy food and fuel to live, and the price of those is not going up because of too much money causing higher demand, the prices are going up because of Brandon and his Globalist cabal's artificial supply restrictions (they are forced to not save the money).

This is all going to get ALOT worse before it gets better, unless they somehow reduce the price of fuel and maybe even subsidize fuel and fertilizer costs - economists would say this would cause inflation, but because the input costs would be reduced the prices would go down).

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Orest's avatar

Awesome column today Jeffrey. I can't understand how inflation could be down 0.2 percentage points to 8.3 percent. I mean, the price I pay for regular gas is now $4.65/gallon, up substantially from even two weeks ago - I bought three gallons to fuel my lawnmower and it was more than I paid two years ago to fill up my entire car.

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