Commentary: Printing our way out of inflation
The stock market continues to convulse, making it about 11 months now since we’ve witnessed some sort of normalcy in the indexes.
The monetary tightening by the
You might ask, “What bad decisions, Marc?”
Subjectively speaking and in this analyst’s opinion, the shutdowns and the fire hose of unemployment and bailout monies has fostered the red-hot inflation we are witnessing now. The shutdowns need no explanation, and the federal cash giveaways increased the money supply by almost 50 percent from what it was pre-pandemic.
Let’s call it what it is: egregious money printing by the governments of the world, similar to the Mexican peso event that decimated that currency decades ago. There have been many other overspending governments throughout history of course, but the Mexican peso event seems to strike a familiar chord in the minds of most. Copious amounts of money printing was Mexico’s problem way back when, and it’s the same problem most governments of the world, including the
The central banks of the world are trying to bring down inflation by tightening down on credit and the money supply of their respective economies.
Ironically (and in my opinion, idiotically), governments are continuing to spend even more money to try and cope with the inflationary problems caused by previous spending.
In the last six months alone,
I’m not pointing a figure at any one party, administration or sovereign government mind you, as they have all overspent for decades. But it was only a matter of time before all that money starting bidding up the prices of everything under the sun. And it has.
Here in the
Meanwhile,
Apparently, at least that many state governments don’t see the irony in handing out free money to counteract the very inflation caused by handing out free money. My opinion of course, and I’m sure I’ll get at least a few nasty letters for that one.
Such is the life of a public columnist.
In conclusion, once we look past the previous mistakes of the
Not only does the
Since the federal and state governments continue to hand out cash, however, I doubt the Feds will be able to accomplish their mission and may even “break something” in the process.
You heard it here first: Inflation is probably not going away anytime soon.
This article expresses the opinion of
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