Republicans Have No Plan to Fix Inflation

[Tom Paine 1949]

I really hate to call anybody names like “moron” … even if they absolutely deserve it. I called bripat9643 a “moron” not only because his comments were idiotic, but because he himself always uses personal insults.

Obviously, the substance of my response, repeated below, was in answer to his ignorant, dishonest and misleading assertion that “The Supreme Court ruled that "coin" does not mean paper money, dumbass.”

So now our “baby with his middle finger in the air” Britpat … wants to play at being some kind of “Gold Bug Constitutionalist”?

What a moron!

The Supreme Court rulings in the “Legal Tender Cases” of 1871 definitively resolved the issue of the right of Congress to issue paper money (even treasury notes not backed by gold) over 150 years ago!

I can’t waste any more time with this moron, who continues to insult me … and everybody’s intelligence.

Anyone interested in the “Legal Tender” rulings can go here:
Legal Tender Cases - Wikipedia

 

[Flopper]

The government doesn’t “manufacture money out of thin air.” In our system that is the job of banks and the Federal Reserve banking system, which is a hybrid private banking system of great private banks with a federal board of governors appointed or approved by Congress and the President from among major financiers (or economic experts).

MONEY CREATION is done NOT by government but by the Federal Reserve — or any bank — and occurs not by “printing currency” but by EXPANDING LOANS and CREDIT. The Treasury may actually print new money or destroy old cash — but this is insignificant and does not ordinarily expand the amount of money put into circulation. It does not compare to the trillions put out by the Fed via loosening monetary conditions, i.e. lowering interest rates or other QE measures.

To increase spending above the level of tax receipts the (federal) government must issue and sell treasury bonds or notes, and first of all they need Congressional spending authority. If this will raise overall federal indebtedness they may need Congressional approval for that as well. Ultimately an ability to sell bonds (borrow money) at reasonable rates from those already holding money is required, which is ordinarily much easier for a great economic power like the U.S. than for weaker ones. Of course in times of financial crisis the Fed has shown its willingness to buy and “monetize” these bonds with “created money” as I have explained before. This is just ABC basics bripat9643 seems to misunderstand. It is crucial to understand these factors if one wishes to reform and change the system, or reduce the incentive for government to spend beyond tax revenues.

bripat9643 ’s question “When did Trump pressure the Fed to print more money?” is thus very poorly worded, but to the extent it has meaning I already answered this question clearly in comment #793 above. The fact that Trump’s populist loose money “Zero Interest Rate Policy” pressure was rejected … shows the relative independence of Federal Reserve bankers in our hybrid system. Of course if President Trump had been re-elected, and controlled Congress, he probably would have removed Powell (whom he had appointed) and found somebody even more amenable to his populist monetary / credit expansionist ideas.

P.S.

I respond to bripat9643 — despite his infantile insults — just to educate others who may be following my words.

Good explanation how the Fed creates money. Expanding on your post, when the Fed increases interest rates it raises the rate that banks pay when borrowing money from the Fed. That in affect increases the rate businesses and consumers pay to borrow money thus we say it reduces the money supply and makes less money available for spending thus reducing demand for goods and services. Open operations which involve buying and selling goverment bonds are another way the Fed reduces or increases the money supply

The Fed has other tools they can use if needed such as changing the discount rate which is the rate banks pay to borrow overnight funds, changing the cap on margin requirements which determines the amount investors can borrow on stocks and bonds, changing the reserve requirement for banks which determines the amount of money banks must hold in reserves, etc.

In short, the fed has a number of tools it can use to stimulate or depress the economy, although changing the fed interest rate and open market operations are the most common.

 

[Mr Natural]

Another round of tax cuts will put more money into peoples pockets so they can pay the exorbitant prices for everyday things.

 

[Godboy]

We read and hear all the disinformed talking crazy about Biden, but they have no plan to stop inflation. If they had one, they would have presented it to congress. Because if they had one and it worked, they would most certainly assure themselves the majority. Instead it's been about obstruction and the idiocy of Big Money Manchin and Corporate Slave Sinema.

I say they have no plan because spending by trump contributed to the inflation.

Facts First: While some economists say the stimulus packages passed in response to the Covid-19 pandemic are having an impact on inflation, it's misleading to suggest that's the only explanation for the recent rise in inflation. Blaming it exclusively on Democratic spending proposals misrepresents what's actually been passed, and ignores the trillions of dollars in spending passed last year supported by Republicans and signed by then-President Donald Trump which economists say have also contributed to inflation.

Last year, Congress passed two bills totaling around $3 trillion in Covid relief spending -- the $2 trillion Coronavirus Aid, Relief and Economic Security Act passed in March 2020, and the $900 billion pandemic relief bill passed in December 2020. Both were signed by Trump and supported by Republicans.

Fact-checking Republican attempts to blame inflation on Democrats

As the US economy gradually recovers from the coronavirus pandemic, prices are rising across the board with inflation exceeding the Federal Reserve's 2% target and reaching a 13-year high in June. Republicans have turned that jump in inflation into a political talking point, trying to place the...

www.cnn.com

And Rick Scotts tax increase for all is not the answer. So the Republican plan is to get the majority and start bogus investigations on Hunter Biden and attempt to impeach Biden, then Harris. If they appoint trump to speaker, understand that is the first move to the attempt to reinstall him as president. Sane Americans cannot continue falling for disinformation. Biden is not the reason that supply chains have been hampered, COVID is. And we were negatively affected by COVID due to the incompetence of a republican president. We cannot afford to have crazies running our government.

Yes we do, but you live in a bubble so you have no idea what republicans have been talking about doing to fix it.

 

[Paleman]

Another round of tax cuts will put more money into peoples pockets so they can pay the exorbitant prices for everyday things.

Tax cuts? What tax cuts? Do you not realize that the left (Biden) is running the show? All that DEMONRATS know is TAXING and SPENDING. As long as the left controls the increasing number of voting fools, we will continue to suffer the consequences of their stupidity.

 

[Flopper]

Another round of tax cuts will put more money into peoples pockets so they can pay the exorbitant prices for everyday things.

And it will also increase demand for goods and services which will drive prices even higher. The last think you want to do in an inflationary environment is provide economic stimulus which is exactly what tax cuts do.

 

[bripat9643]

And it will also increase demand for goods and services which will drive prices even higher. The last think you want to do in an inflationary environment is provide economic stimulus which is exactly what tax cuts do.

Tax cuts don't cause inflation, moron