Rigby5
Diamond Member
We are NOT experiencing inflation.
Inflation is where the economy is booming so much, that people have so much extra money that they are willing to pay more for things and create shortages out of prosperity.
That is not what we have.
Instead what we have is where we shut down the economy so much that the government had to print fake money and hand it out, in order to prevent a total economic collapse. So now money is just worth much less, and that made prices rise.
The shortages we have now are not from prosperity, but poverty.
Companies are going under and there is less production.
When prices go up because of devaluation of currency, that is not inflation.
That is actually a recession, and you can't get out of that by increasing interest rates.
Increasing interest rates will not reduce prices, but greatly increase them.
Inflation is where the economy is booming so much, that people have so much extra money that they are willing to pay more for things and create shortages out of prosperity.
That is not what we have.
Instead what we have is where we shut down the economy so much that the government had to print fake money and hand it out, in order to prevent a total economic collapse. So now money is just worth much less, and that made prices rise.
The shortages we have now are not from prosperity, but poverty.
Companies are going under and there is less production.
When prices go up because of devaluation of currency, that is not inflation.
That is actually a recession, and you can't get out of that by increasing interest rates.
Increasing interest rates will not reduce prices, but greatly increase them.
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