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Hyperinflation? ONE QUARTER of Money in Circulation Has Been Created Since January 2020

007

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Can't blame this solely on Sniff Biden and the democrats. Both parties are guilty of this. Evidently the national debt is a non issue, so long as the fed, who isn't federal at all, can continue to create money out of thin air. Evidently no one in our government has ever heard of the Weimar Republic in pre WWII Germany.

------------------

Why Inflation Is at a 12-year High

It’s all about the money.


Yesterday, the Bureau of Labor Statistics (BLS) released numbers indicating that the average price level of consumer goods has risen 4.2% since this time last year. This is the highest rate since 2008. In other words, the average consumer making the same salary this year has taken a pay cut when you consider what their paycheck can actually buy.

How does the BLS know this? One way the BLS keeps track of inflation is by using the consumer price index (CPI). The CPI uses some of the common goods urban consumers buy, and they keep track of the prices of these goods each year.

A CPI growth of 4.2% means this “basket” of goods the average urban consumer buys has gotten 4.2% more expensive. Economists call this measure inflation.

The CPI is by no means a perfect measure of inflation, nor could any measure be, but it provides some kind of benchmark to compare how much prices are changing over time.

What Is Happening to Our Money?

Why is inflation increasing now? It’s all about the money. Imagine tomorrow that suddenly all US money becomes a 10x larger number. Ten dollar bills become 100 dollar bills, bank accounts with $10,000 turn into accounts with $100,000, and the four quarters in your cup holder transform into a 10 dollar bill.

This might sound nice at first, but consider what happens next. If prices stay the same, suddenly people rush out to buy new things. Suddenly, a student with a $7000 student loan can buy a Porsche. Someone can afford a down payment on a house who was months away before. A kid with a generous allowance buys a flat-screen TV.

But now the problems appear. All cars for sale are being driven off the lot. TV shelves are empty. House offers pour in only minutes after listing. There is more money, but the exact same amount of goods exist. With so many customers demanding new goods, sellers have 10 customers fighting over one product. So what happens? The price is bid up.

In fact, prices in this world will make, on average, the same change as bank accounts. One dollar candy bars become $10, average quality TVs cost thousands of dollars, and the $100,000 two-bedroom in Kansas becomes a million-dollar purchase.

If more dollars chase the exact same goods, prices will rise.

The Money Printer Goes Brrr

Although the above example is simplified, the general idea holds in the real world. Unfortunately, not everyone has gotten 10x more money, but new money has been introduced to the economy.

The quantity of money (measured as “M2” by the Federal Reserve) has increased more than 32.9% since January 2020.

That means nearly one-quarter of the money in circulation has been created since then. As the following graph shows, a change like this is unprecedented in recent history.

Continue reading: Why Inflation Is at a 12-year High | Peter Jacobsen
 

xband

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Can't blame this solely on Sniff Biden and the democrats. Both parties are guilty of this. Evidently the national debt is a non issue, so long as the fed, who isn't federal at all, can continue to create money out of thin air. Evidently no one in our government has ever heard of the Weimar Republic in pre WWII Germany.

------------------

Why Inflation Is at a 12-year High

It’s all about the money.


Yesterday, the Bureau of Labor Statistics (BLS) released numbers indicating that the average price level of consumer goods has risen 4.2% since this time last year. This is the highest rate since 2008. In other words, the average consumer making the same salary this year has taken a pay cut when you consider what their paycheck can actually buy.

How does the BLS know this? One way the BLS keeps track of inflation is by using the consumer price index (CPI). The CPI uses some of the common goods urban consumers buy, and they keep track of the prices of these goods each year.

A CPI growth of 4.2% means this “basket” of goods the average urban consumer buys has gotten 4.2% more expensive. Economists call this measure inflation.

The CPI is by no means a perfect measure of inflation, nor could any measure be, but it provides some kind of benchmark to compare how much prices are changing over time.

What Is Happening to Our Money?

Why is inflation increasing now? It’s all about the money. Imagine tomorrow that suddenly all US money becomes a 10x larger number. Ten dollar bills become 100 dollar bills, bank accounts with $10,000 turn into accounts with $100,000, and the four quarters in your cup holder transform into a 10 dollar bill.

This might sound nice at first, but consider what happens next. If prices stay the same, suddenly people rush out to buy new things. Suddenly, a student with a $7000 student loan can buy a Porsche. Someone can afford a down payment on a house who was months away before. A kid with a generous allowance buys a flat-screen TV.

But now the problems appear. All cars for sale are being driven off the lot. TV shelves are empty. House offers pour in only minutes after listing. There is more money, but the exact same amount of goods exist. With so many customers demanding new goods, sellers have 10 customers fighting over one product. So what happens? The price is bid up.

In fact, prices in this world will make, on average, the same change as bank accounts. One dollar candy bars become $10, average quality TVs cost thousands of dollars, and the $100,000 two-bedroom in Kansas becomes a million-doll purchase.

If more dollars chase the exact same goods, prices will rise.

The Money Printer Goes Brrr

Although the above example is simplified, the general idea holds in the real world. Unfortunately, not everyone has gotten 10x more money, but new money has been introduced to the economy.

The quantity of money (measured as “M2” by the Federal Reserve) has increased more than 32.9% since January 2020.

That means nearly one-quarter of the money in circulation has been created since then. As the following graph shows, a change like this is unprecedented in recent history.

Continue reading: Why Inflation Is at a 12-year High | Peter Jacobsen
I went paperless years ago. Counterfeit currency doesn't' scare me.
 
OP
007

007

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Can't blame this solely on Sniff Biden and the democrats. Both parties are guilty of this. Evidently the national debt is a non issue, so long as the fed, who isn't federal at all, can continue to create money out of thin air. Evidently no one in our government has ever heard of the Weimar Republic in pre WWII Germany.

------------------

Why Inflation Is at a 12-year High

It’s all about the money.


Yesterday, the Bureau of Labor Statistics (BLS) released numbers indicating that the average price level of consumer goods has risen 4.2% since this time last year. This is the highest rate since 2008. In other words, the average consumer making the same salary this year has taken a pay cut when you consider what their paycheck can actually buy.

How does the BLS know this? One way the BLS keeps track of inflation is by using the consumer price index (CPI). The CPI uses some of the common goods urban consumers buy, and they keep track of the prices of these goods each year.

A CPI growth of 4.2% means this “basket” of goods the average urban consumer buys has gotten 4.2% more expensive. Economists call this measure inflation.

The CPI is by no means a perfect measure of inflation, nor could any measure be, but it provides some kind of benchmark to compare how much prices are changing over time.

What Is Happening to Our Money?

Why is inflation increasing now? It’s all about the money. Imagine tomorrow that suddenly all US money becomes a 10x larger number. Ten dollar bills become 100 dollar bills, bank accounts with $10,000 turn into accounts with $100,000, and the four quarters in your cup holder transform into a 10 dollar bill.

This might sound nice at first, but consider what happens next. If prices stay the same, suddenly people rush out to buy new things. Suddenly, a student with a $7000 student loan can buy a Porsche. Someone can afford a down payment on a house who was months away before. A kid with a generous allowance buys a flat-screen TV.

But now the problems appear. All cars for sale are being driven off the lot. TV shelves are empty. House offers pour in only minutes after listing. There is more money, but the exact same amount of goods exist. With so many customers demanding new goods, sellers have 10 customers fighting over one product. So what happens? The price is bid up.

In fact, prices in this world will make, on average, the same change as bank accounts. One dollar candy bars become $10, average quality TVs cost thousands of dollars, and the $100,000 two-bedroom in Kansas becomes a million-doll purchase.

If more dollars chase the exact same goods, prices will rise.

The Money Printer Goes Brrr

Although the above example is simplified, the general idea holds in the real world. Unfortunately, not everyone has gotten 10x more money, but new money has been introduced to the economy.

The quantity of money (measured as “M2” by the Federal Reserve) has increased more than 32.9% since January 2020.

That means nearly one-quarter of the money in circulation has been created since then. As the following graph shows, a change like this is unprecedented in recent history.

Continue reading: Why Inflation Is at a 12-year High | Peter Jacobsen
I went paperless years ago. Counterfeit currency doesn't' scare me.
What exactly is "paperless?"
 

Moonglow

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Can you say price gouging? The corporations are making bank and giving themselves raises and don't care about you poh trash.
 

xband

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Can't blame this solely on Sniff Biden and the democrats. Both parties are guilty of this. Evidently the national debt is a non issue, so long as the fed, who isn't federal at all, can continue to create money out of thin air. Evidently no one in our government has ever heard of the Weimar Republic in pre WWII Germany.

------------------

Why Inflation Is at a 12-year High

It’s all about the money.


Yesterday, the Bureau of Labor Statistics (BLS) released numbers indicating that the average price level of consumer goods has risen 4.2% since this time last year. This is the highest rate since 2008. In other words, the average consumer making the same salary this year has taken a pay cut when you consider what their paycheck can actually buy.

How does the BLS know this? One way the BLS keeps track of inflation is by using the consumer price index (CPI). The CPI uses some of the common goods urban consumers buy, and they keep track of the prices of these goods each year.

A CPI growth of 4.2% means this “basket” of goods the average urban consumer buys has gotten 4.2% more expensive. Economists call this measure inflation.

The CPI is by no means a perfect measure of inflation, nor could any measure be, but it provides some kind of benchmark to compare how much prices are changing over time.

What Is Happening to Our Money?

Why is inflation increasing now? It’s all about the money. Imagine tomorrow that suddenly all US money becomes a 10x larger number. Ten dollar bills become 100 dollar bills, bank accounts with $10,000 turn into accounts with $100,000, and the four quarters in your cup holder transform into a 10 dollar bill.

This might sound nice at first, but consider what happens next. If prices stay the same, suddenly people rush out to buy new things. Suddenly, a student with a $7000 student loan can buy a Porsche. Someone can afford a down payment on a house who was months away before. A kid with a generous allowance buys a flat-screen TV.

But now the problems appear. All cars for sale are being driven off the lot. TV shelves are empty. House offers pour in only minutes after listing. There is more money, but the exact same amount of goods exist. With so many customers demanding new goods, sellers have 10 customers fighting over one product. So what happens? The price is bid up.

In fact, prices in this world will make, on average, the same change as bank accounts. One dollar candy bars become $10, average quality TVs cost thousands of dollars, and the $100,000 two-bedroom in Kansas becomes a million-doll purchase.

If more dollars chase the exact same goods, prices will any banker.

The Money Printer Goes Brrr

Although the above example is simplified, the general idea holds in the real world. Unfortunately, not everyone has gotten 10x more money, but new money has been introduced to the economy.

The quantity of money (measured as “M2” by the Federal Reserve) has increased more than 32.9% since January 2020.

That means nearly one-quarter of the money in circulation has been created since then. As the following graph shows, a change like this is unprecedented in recent history.

Continue reading: Why Inflation Is at a 12-year High | Peter Jacobsen
I went paperless years ago. Counterfeit currency doesn't' scare me.
What exactly is "paperless?"
Using a major credit card, in a nutshell.. Ask any baker.
 
OP
007

007

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Can't blame this solely on Sniff Biden and the democrats. Both parties are guilty of this. Evidently the national debt is a non issue, so long as the fed, who isn't federal at all, can continue to create money out of thin air. Evidently no one in our government has ever heard of the Weimar Republic in pre WWII Germany.

------------------

Why Inflation Is at a 12-year High

It’s all about the money.


Yesterday, the Bureau of Labor Statistics (BLS) released numbers indicating that the average price level of consumer goods has risen 4.2% since this time last year. This is the highest rate since 2008. In other words, the average consumer making the same salary this year has taken a pay cut when you consider what their paycheck can actually buy.

How does the BLS know this? One way the BLS keeps track of inflation is by using the consumer price index (CPI). The CPI uses some of the common goods urban consumers buy, and they keep track of the prices of these goods each year.

A CPI growth of 4.2% means this “basket” of goods the average urban consumer buys has gotten 4.2% more expensive. Economists call this measure inflation.

The CPI is by no means a perfect measure of inflation, nor could any measure be, but it provides some kind of benchmark to compare how much prices are changing over time.

What Is Happening to Our Money?

Why is inflation increasing now? It’s all about the money. Imagine tomorrow that suddenly all US money becomes a 10x larger number. Ten dollar bills become 100 dollar bills, bank accounts with $10,000 turn into accounts with $100,000, and the four quarters in your cup holder transform into a 10 dollar bill.

This might sound nice at first, but consider what happens next. If prices stay the same, suddenly people rush out to buy new things. Suddenly, a student with a $7000 student loan can buy a Porsche. Someone can afford a down payment on a house who was months away before. A kid with a generous allowance buys a flat-screen TV.

But now the problems appear. All cars for sale are being driven off the lot. TV shelves are empty. House offers pour in only minutes after listing. There is more money, but the exact same amount of goods exist. With so many customers demanding new goods, sellers have 10 customers fighting over one product. So what happens? The price is bid up.

In fact, prices in this world will make, on average, the same change as bank accounts. One dollar candy bars become $10, average quality TVs cost thousands of dollars, and the $100,000 two-bedroom in Kansas becomes a million-doll purchase.

If more dollars chase the exact same goods, prices will any banker.

The Money Printer Goes Brrr

Although the above example is simplified, the general idea holds in the real world. Unfortunately, not everyone has gotten 10x more money, but new money has been introduced to the economy.

The quantity of money (measured as “M2” by the Federal Reserve) has increased more than 32.9% since January 2020.

That means nearly one-quarter of the money in circulation has been created since then. As the following graph shows, a change like this is unprecedented in recent history.

Continue reading: Why Inflation Is at a 12-year High | Peter Jacobsen
I went paperless years ago. Counterfeit currency doesn't' scare me.
What exactly is "paperless?"
Using a major credit card, in a nutshell.. Ask any baker.
As far as the big picture is concerned, what difference does it make?
 

White 6

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Can't blame this solely on Sniff Biden and the democrats. Both parties are guilty of this. Evidently the national debt is a non issue, so long as the fed, who isn't federal at all, can continue to create money out of thin air. Evidently no one in our government has ever heard of the Weimar Republic in pre WWII Germany.

------------------

Why Inflation Is at a 12-year High

It’s all about the money.


Yesterday, the Bureau of Labor Statistics (BLS) released numbers indicating that the average price level of consumer goods has risen 4.2% since this time last year. This is the highest rate since 2008. In other words, the average consumer making the same salary this year has taken a pay cut when you consider what their paycheck can actually buy.

How does the BLS know this? One way the BLS keeps track of inflation is by using the consumer price index (CPI). The CPI uses some of the common goods urban consumers buy, and they keep track of the prices of these goods each year.

A CPI growth of 4.2% means this “basket” of goods the average urban consumer buys has gotten 4.2% more expensive. Economists call this measure inflation.

The CPI is by no means a perfect measure of inflation, nor could any measure be, but it provides some kind of benchmark to compare how much prices are changing over time.

What Is Happening to Our Money?

Why is inflation increasing now? It’s all about the money. Imagine tomorrow that suddenly all US money becomes a 10x larger number. Ten dollar bills become 100 dollar bills, bank accounts with $10,000 turn into accounts with $100,000, and the four quarters in your cup holder transform into a 10 dollar bill.

This might sound nice at first, but consider what happens next. If prices stay the same, suddenly people rush out to buy new things. Suddenly, a student with a $7000 student loan can buy a Porsche. Someone can afford a down payment on a house who was months away before. A kid with a generous allowance buys a flat-screen TV.

But now the problems appear. All cars for sale are being driven off the lot. TV shelves are empty. House offers pour in only minutes after listing. There is more money, but the exact same amount of goods exist. With so many customers demanding new goods, sellers have 10 customers fighting over one product. So what happens? The price is bid up.

In fact, prices in this world will make, on average, the same change as bank accounts. One dollar candy bars become $10, average quality TVs cost thousands of dollars, and the $100,000 two-bedroom in Kansas becomes a million-dollar purchase.

If more dollars chase the exact same goods, prices will rise.

The Money Printer Goes Brrr

Although the above example is simplified, the general idea holds in the real world. Unfortunately, not everyone has gotten 10x more money, but new money has been introduced to the economy.

The quantity of money (measured as “M2” by the Federal Reserve) has increased more than 32.9% since January 2020.

That means nearly one-quarter of the money in circulation has been created since then. As the following graph shows, a change like this is unprecedented in recent history.

Continue reading: Why Inflation Is at a 12-year High | Peter Jacobsen
Last year was a suck year, with lots of people out of work, many businesses closed or curtailed and everybody knows it. Now economy is opening back up and businesses that suffered (many) are trying to recoup. Does it surprise you that business sees an expanding economy and better employment a good time to raise prices? Is it inflationary? Sure. Predictable? Yep.
This ain't my first rodeo. I'll wait, to panic later.
 

Moonglow

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During hyperinflation the percentage of interest on money to loan is high, right now it is not high..
 
OP
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007

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Can't blame this solely on Sniff Biden and the democrats. Both parties are guilty of this. Evidently the national debt is a non issue, so long as the fed, who isn't federal at all, can continue to create money out of thin air. Evidently no one in our government has ever heard of the Weimar Republic in pre WWII Germany.

------------------

Why Inflation Is at a 12-year High

It’s all about the money.


Yesterday, the Bureau of Labor Statistics (BLS) released numbers indicating that the average price level of consumer goods has risen 4.2% since this time last year. This is the highest rate since 2008. In other words, the average consumer making the same salary this year has taken a pay cut when you consider what their paycheck can actually buy.

How does the BLS know this? One way the BLS keeps track of inflation is by using the consumer price index (CPI). The CPI uses some of the common goods urban consumers buy, and they keep track of the prices of these goods each year.

A CPI growth of 4.2% means this “basket” of goods the average urban consumer buys has gotten 4.2% more expensive. Economists call this measure inflation.

The CPI is by no means a perfect measure of inflation, nor could any measure be, but it provides some kind of benchmark to compare how much prices are changing over time.

What Is Happening to Our Money?

Why is inflation increasing now? It’s all about the money. Imagine tomorrow that suddenly all US money becomes a 10x larger number. Ten dollar bills become 100 dollar bills, bank accounts with $10,000 turn into accounts with $100,000, and the four quarters in your cup holder transform into a 10 dollar bill.

This might sound nice at first, but consider what happens next. If prices stay the same, suddenly people rush out to buy new things. Suddenly, a student with a $7000 student loan can buy a Porsche. Someone can afford a down payment on a house who was months away before. A kid with a generous allowance buys a flat-screen TV.

But now the problems appear. All cars for sale are being driven off the lot. TV shelves are empty. House offers pour in only minutes after listing. There is more money, but the exact same amount of goods exist. With so many customers demanding new goods, sellers have 10 customers fighting over one product. So what happens? The price is bid up.

In fact, prices in this world will make, on average, the same change as bank accounts. One dollar candy bars become $10, average quality TVs cost thousands of dollars, and the $100,000 two-bedroom in Kansas becomes a million-dollar purchase.

If more dollars chase the exact same goods, prices will rise.

The Money Printer Goes Brrr

Although the above example is simplified, the general idea holds in the real world. Unfortunately, not everyone has gotten 10x more money, but new money has been introduced to the economy.

The quantity of money (measured as “M2” by the Federal Reserve) has increased more than 32.9% since January 2020.

That means nearly one-quarter of the money in circulation has been created since then. As the following graph shows, a change like this is unprecedented in recent history.

Continue reading: Why Inflation Is at a 12-year High | Peter Jacobsen
Last year was a suck year, with lots of people out of work, many businesses closed or curtailed and everybody knows it. Now economy is opening back up and businesses that suffered (many) are trying to recoup. Does it surprise you that business sees an expanding economy and better employment a good time to raise prices? Is it inflationary? Sure. Predictable? Yep.
This ain't my first rodeo. I'll wait, to panic later.
Never before in history has a quarter of all the money in circulation been infused in just a few months. If that doesn't set off a red flag for you, along with the national debt exploding out of control, then, whatever. I guess life is good in lala land.
 

xband

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Can't blame this solely on Sniff Biden and the democrats. Both parties are guilty of this. Evidently the national debt is a non issue, so long as the fed, who isn't federal at all, can continue to create money out of thin air. Evidently no one in our government has ever heard of the Weimar Republic in pre WWII Germany.

------------------

Why Inflation Is at a 12-year High

It’s all about the money.


Yesterday, the Bureau of Labor Statistics (BLS) released numbers indicating that the average price level of consumer goods has risen 4.2% since this time last year. This is the highest rate since 2008. In other words, the average consumer making the same salary this year has taken a pay cut when you consider what their paycheck can actually buy.

How does the BLS know this? One way the BLS keeps track of inflation is by using the consumer price index (CPI). The CPI uses some of the common goods urban consumers buy, and they keep track of the prices of these goods each year.

A CPI growth of 4.2% means this “basket” of goods the average urban consumer buys has gotten 4.2% more expensive. Economists call this measure inflation.

The CPI is by no means a perfect measure of inflation, nor could any measure be, but it provides some kind of benchmark to compare how much prices are changing over time.

What Is Happening to Our Money?

Why is inflation increasing now? It’s all about the money. Imagine tomorrow that suddenly all US money becomes a 10x larger number. Ten dollar bills become 100 dollar bills, bank accounts with $10,000 turn into accounts with $100,000, and the four quarters in your cup holder transform into a 10 dollar bill.

This might sound nice at first, but consider what happens next. If prices stay the same, suddenly people rush out to buy new things. Suddenly, a student with a $7000 student loan can buy a Porsche. Someone can afford a down payment on a house who was months away before. A kid with a generous allowance buys a flat-screen TV.

But now the problems appear. All cars for sale are being driven off the lot. TV shelves are empty. House offers pour in only minutes after listing. There is more money, but the exact same amount of goods exist. With so many customers demanding new goods, sellers have 10 customers fighting over one product. So what happens? The price is bid up.

In fact, prices in this world will make, on average, the same change as bank accounts. One dollar candy bars become $10, average quality TVs cost thousands of dollars, and the $100,000 two-bedroom in Kansas becomes a million-doll purchase.

If more dollars chase the exact same goods, prices will any banker.

The Money Printer Goes Brrr

Although the above example is simplified, the general idea holds in the real world. Unfortunately, not everyone has gotten 10x more money, but new money has been introduced to the economy.

The quantity of money (measured as “M2” by the Federal Reserve) has increased more than 32.9% since January 2020.

That means nearly one-quarter of the money in circulation has been created since then. As the following graph shows, a change like this is unprecedented in recent history.

Continue reading: Why Inflation Is at a 12-year High | Peter Jacobsen
I went paperless years ago. Counterfeit currency doesn't' scare me.
What exactly is "paperless?"
Using a major credit card, in a nutshell.. Ask any baker.
As far as the big picture is concerned, what difference does it make?
The purpose in life is to defeat the enemy.
 

TransLivesMatter

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All this inflation is a result of Trumps tax cuts finally kicking in. Biden’s tax on the top 1% and his $6trillion plan is going to get us out of Rumps horrific economy.
 

White 6

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Can't blame this solely on Sniff Biden and the democrats. Both parties are guilty of this. Evidently the national debt is a non issue, so long as the fed, who isn't federal at all, can continue to create money out of thin air. Evidently no one in our government has ever heard of the Weimar Republic in pre WWII Germany.

------------------

Why Inflation Is at a 12-year High

It’s all about the money.


Yesterday, the Bureau of Labor Statistics (BLS) released numbers indicating that the average price level of consumer goods has risen 4.2% since this time last year. This is the highest rate since 2008. In other words, the average consumer making the same salary this year has taken a pay cut when you consider what their paycheck can actually buy.

How does the BLS know this? One way the BLS keeps track of inflation is by using the consumer price index (CPI). The CPI uses some of the common goods urban consumers buy, and they keep track of the prices of these goods each year.

A CPI growth of 4.2% means this “basket” of goods the average urban consumer buys has gotten 4.2% more expensive. Economists call this measure inflation.

The CPI is by no means a perfect measure of inflation, nor could any measure be, but it provides some kind of benchmark to compare how much prices are changing over time.

What Is Happening to Our Money?

Why is inflation increasing now? It’s all about the money. Imagine tomorrow that suddenly all US money becomes a 10x larger number. Ten dollar bills become 100 dollar bills, bank accounts with $10,000 turn into accounts with $100,000, and the four quarters in your cup holder transform into a 10 dollar bill.

This might sound nice at first, but consider what happens next. If prices stay the same, suddenly people rush out to buy new things. Suddenly, a student with a $7000 student loan can buy a Porsche. Someone can afford a down payment on a house who was months away before. A kid with a generous allowance buys a flat-screen TV.

But now the problems appear. All cars for sale are being driven off the lot. TV shelves are empty. House offers pour in only minutes after listing. There is more money, but the exact same amount of goods exist. With so many customers demanding new goods, sellers have 10 customers fighting over one product. So what happens? The price is bid up.

In fact, prices in this world will make, on average, the same change as bank accounts. One dollar candy bars become $10, average quality TVs cost thousands of dollars, and the $100,000 two-bedroom in Kansas becomes a million-dollar purchase.

If more dollars chase the exact same goods, prices will rise.

The Money Printer Goes Brrr

Although the above example is simplified, the general idea holds in the real world. Unfortunately, not everyone has gotten 10x more money, but new money has been introduced to the economy.

The quantity of money (measured as “M2” by the Federal Reserve) has increased more than 32.9% since January 2020.

That means nearly one-quarter of the money in circulation has been created since then. As the following graph shows, a change like this is unprecedented in recent history.

Continue reading: Why Inflation Is at a 12-year High | Peter Jacobsen
Last year was a suck year, with lots of people out of work, many businesses closed or curtailed and everybody knows it. Now economy is opening back up and businesses that suffered (many) are trying to recoup. Does it surprise you that business sees an expanding economy and better employment a good time to raise prices? Is it inflationary? Sure. Predictable? Yep.
This ain't my first rodeo. I'll wait, to panic later.
Never before in history has a quarter of all the money in circulation been infused in just a few months. If that doesn't set off a red flag for you, along with the national debt exploding out of control, then, whatever. I guess life is good in lala land.
Don't know about lala land, but I'm in good shape.
 

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