Does inflation cause the price of gas to go up, or does the price of gas going up cause the inflation?
Inflation? Inflation? Inflation?
I have no health insurance.
Went to the Doc for a 10 minute visit.
$400.00.
Gee! Ain’t things rockin’ on Wall Street..
Spit!!!
Re: “Does inflation cause the price of gas to go up, or does the price of gas going up cause the inflation?”
Inflation and deflation are caused by the supply and demand for a specific currency - in this case, the U.S. Dollar.
If the Federal Reserve “prints” too much money, business owners and working people lose confidence in the “value” of the USD, and they start to demand higher prices and higher wages.
An example of printing money...
Since the Great Recession of 2008-2009, the U.S. Treasury has “borrowed” trillions of dollars to stimulate the economy and to cover unfunded government expenses.
In fact, the only thing that has really happened is that the Federal Reserve has “purchased” most of the extra U.S. Treasury debt by making electronic transfers of trillions of dollars of “ghost money” into the U.S. Treasury’s bank account.
The great financial mystery of the last ten years is that inflation has been quite low, even though every Central Bank in the world is printing huge amounts of ghost money.
Is America’s inflation bill about to come due for spending all that “fake” money for the last ten years?
In theory, if the USA economy expands fast enough to absorb all that recently printed money, then inflation should stay low.
But if the theory is wrong, or if growth stays low, then we can add high inflation to the big pile of everything else we have to worry about.