Richard W.
I think they're already doing that. Arete might know how much money they've added over the past few months.
But, help me here. At some point do we get inflation and higher interest rates? But, right now the prices on some goods are so low they're silly. Didn't it take a catalyst in the '70s (ie: oil embargo) to cause things to spin out of control? And I read some things this weekend about the government increasing oil stockpiles, I would imagine to avoid just such an occurance.
That's what's so fascinating. Can the government do enough to prop things up? I would think immigration and globalism are a big part to the scheme. But people are getting pretty upset with those initiatives. One wonders what will happen after the elections, when those elected will get in office again without these things coming up and affecting who ends up in office.
Richard W.
Richard W.
I agree. Both suppress wage inflation. Some things, things that are capital intensive like cars and houses, have inflated at incrediable levels. So have things that demand highly skilled labor like medical costs. Those things show an increasingly worhtless dollar. Other things, that are made by unskilled labor and don't use a lot of expensive raw materials to produce, are absurdly cheap- the labor to make them are slaves in the PRC.
Inflation is too much money chasing too few goods. With easy to make goods, there are so many now due to productivity increases that there is NO inflation in those items. But the inflation is there. It will be amplified if the dollar loses value, because other countries like to hold dollars. This allowed the fed to dump in a lot of new dollars, knowing that there was a demand for them as a reserve currency. If that ever stops, if those nations start dumping dollars, it will casue an inflationary collapse of the dollar like we have never seen in America.