Reply to U.S. Annual Inflation rose to 6.8% in November

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Reply to "U.S. Annual Inflation rose to 6.8% in November - the highest in 40 years"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]We have inflation because our economy is growing so quickly - in a pandemic no less.  Americans are buying like crazy.  Unemployment is low.  Housing prices high.  People lifted out of poverty.  What do you want?[/quote]

We have inflation because the supply of money has been expanded by almost 50% in only about 2 years.  People are buying because of lax fiscal and monetary policy.  It's a cheap sugar rush, not the sign of a strong economy.  The diabetic crash is inevitable.  See how well the employment and poverty numbers look when there's severe economic contraction when the central bank has to raise interest rates to control the problem of inflation. Look at what happened to Japan when they created a gigantic asset bubble the same way we have done, and the bank of japan raised interest rates to deflate the bubble.  Everything imploded. [/quote]

This.  So much free money was floating around the economy.  In order to get workers hourly wages have had to be risen drastically in the last two years.
Biden likes to disparage the meatpacking industry but in our very own Maryland eastern shore counties, Sussex County Delaware and Accomac County Virginia hourly rates of pay for chicken processors were $10 per hour prior to Covid.  This is why your chicken was affordable.  Due to the government flooding the supply of money starting rates of pay for chicken processors (in less than 2 years) are now at $17 - $20 per hour.  It was inevitable that the price of your chicken rose in cost.[/quote]

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