No, there it ISN'T. Inflation DOES NOT MEAN "government spending and printing money." Nor does it mean "an increase in money supply". Here is what I have been saying all along: Inflation in Economics means the decline of purchasing power for a currency (i.e. rising prices) over time. There are several factors that can contribute to inflation, including a decrease in supply, an increase in demand, taxes, tariffs, regulations, and an increase in money supply. Although not likely, inflation can occur even when the money supply shrinks, and/or when government doesn't print money at all. And as I have said, printing money is not the major source of money creation, anyway. What you accused me of is that I don't believe government increasing the money supply is a factor in inflation. YOU LIED. I have said precisely the opposite, while correcting jmg's erroneous definition of inflation. It is YOU who are the liar now. And before. And I am certain it will be YOU in the future.
Look here moron. You are conflating value with inflation. When you create more of something, it is inflationary. Less scarce. If I give you a balloon with 1lb of air and you add more, you are inflating the balloon. This is a definition that has been around forever. If there were $20 trillion US dollars in circulation and we decided to add $4 trillion new dollars, we have inflated the supply of dollars. When you say decline in purchasing power, you are only talking about the value of a dollar. The single most direct impact on this is the printing of money. When the Fed printed 7 trillion new dollars, this was inflationary. There didn't add 7 trillion in value. All they did was print money and hand it out. That is the EXACT definition of an inflationary asset. Now, you can have an inflationary asset that goes up in value if you have a means of value creation, The Fed controls the money supply. It does not add value. If the US never left the gold standard, $1 would have 100X the value it does today. We would also have less actual dollars in circulation as we could not print our way out of a crisis. What the Fed now does is leverage US value via printing and interest rate manipulation. The only way to increase value of a US dollar is to drive US exports in products, services, and technology. This is done by converting local currency into US dollars.
The problem with you Rex, is that you dismissed the above and a none issue and blamed, well, Trump for the record high inflation. It is true that supply and demand do factor into the inflation calculation but its is exactly the FED that controls inflation via monetary policy. Clearly, the current FED group missed the boat guy.
What I have given here is the exact definition of inflation according to 100% of accredited economists all over the known universe. For that I was called a liar and an idiot by liars and by idiots who have no apparent education in economics, whatsoever. I have also said it's absurd to blame Biden for inflation because of government stimulus when the stimulus program passed in March 2020 under trump was even larger than that passed under Biden, and it was trump, not Biden, who crashed this country's production capabilities and jobs and demand. It was also trump who exploded the money supply by the aforesaid stimulus and crash, and by constantly attacking the Fed Reserve to keep interest rates low because his own measure of success was the stock market indexes. And I am not wrong on that, either. I have also said that inflation is a genuine concern right now, but can't be viewed in a vacuum. Americans are better off right now than they were a year ago, even when inflation is factored in, because they at least have jobs, store shelves are being stocked, and production is coming back..
US presidents cannot and do not direct the Federal Reserve. They are independent of the office of the president. Trump nor Biden can tell the Fed to keep rates low or raise them. Neither can they tell the Fed to stop printing or print more.
