Wulfschilde wrote:Yeah I'm gonna have to strongly disagree with this one. Something like 40% of all the US dollars in existence were printed during the COVID pandemic. That's the nice way to phrase it, another way to phrase it is that they almost doubled the money supply in order to hide the fact that we've been in an artificially-induced recession for about two years. The idea that doubling the money supply won't cause inflation is laughable to me.
Also, isn't corporations increasing their prices literally what inflation is?
I going to have to strongly dis agree with you on that.
Where in the world did you find it that about 40% of all the dollars in the world were created in the last 2 years?
If this were true, then over 1/3 of all dollars were created in the last 2 years. This would mean that the so-called national debt had increased by 50% in the last 2 years. Since it was over $24 T at the end of 2019, that would be over $12 T.
It came to me the other day what the basic problem with the money supply theory as the cause of inflation is. It is that the competition theory of pricing holds that competition for sales will cause prices to fall to the minimum that provides a sufficient profit for the corps to survive. This true in an "Adam Smith type" "free market". i.e., a market free from monopoly pricing power. [Neo-liberals have suppressed the teaching of the history of economic thinking, so they could redefine Free Market as a market free of Gov. interference.] AFAIK, these 2 theories contradict each other. One holds that a free market will have corps increasing production to suck up extra dollars in the economy because they can't just increase prices without losing sales; and the other theory holds that corps can increase prices and not lose sales when there is more money in an economy. They have both been proved with the logic that is used to prove economic theories, but they both can't be true.
I claimed that the current inflation is caused by shortages. The existence of shortages shows that corps can't increase production for some reason. So, if people still need or strongly want to buy some class of products, then the price will increase as the market does its thing and determines who gets to buy the products. It does this by increasing the price. So, there is temporary inflation.
. . . I also, claimed that the 2nd cause of the inflation is the monopoly pricing power that corps like Apple and Amazon as well as OPEC have to increase their prices. So, we are seeing inflation. Oil is in everything, so oil price increases will increase the price of everything.
BTW --- banks also print money with every loan and every credit card purchase. During covid, many middle class people used their stimulus checks to pay down their credit card balances. This destroyed the money that their bank had created when they (the card holder) ran the total they owed up. You didn't include this in your calculation of money created, did you?