Reply to Can someone explain to me why we have such high inflation now?

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[quote=Anonymous][quote=Anonymous]“ Understanding the CARES Act
At $2.2 trillion, the CARES Act stands as the largest financial rescue package in U.S. history. The 2009 Recovery Act was $831 billion, the Consolidated Appropriations Act (CAA) was $910 billion, and the American Rescue Plan Act (ARPA) comes closest at $1.9 trillion.”[/quote]
Don’t believe the stupid Republican shitty explanation given above.  They will go down to the hell with the markets but they will keep pointing their fingers at the wrong source (poor people helped by the Democratic government when the poor people lost jobs due to pandemic).  Also, lot of money given out by the government was pocketed by white collar fraudsters and business owners.  The pp who blamed the inflation on the fiscal stimulus has zero, I repeat zero knowledge of finance and macro economy.
Here is my explanation: when shit hit the fan in terms of global Covid pandemic, all central banks furiously opened up their spigots and created unprecedented amounts of currencies from thin air.  Central banks like Federal Reserve create currencies (numbers in various commercial banks’ accounts and in their own accounts).  Federal Reserve created, wait and tighten your belt, Nine Trillion dollars and freely distributed to all kinds of big borrowers, including publicly held corporations for the first time in history.  All of those loans and near zero nominal (and negative real interest rates).  This increased the money supply like never done in the history of mankind.  At the same time the pandemic response by the countries literally shut down manufacturing and supply chains.  That supply chain problem still lingers causing cost of materials and cost of transportation to increase and the volume of finished goods to go down.  The energy crisis resulting from Russia’s invasion of Ukrain added to increased costs.  So, the cost of producing goods is more and the volume of goods available is less (in other words, less supply and higher cost).  On the demand side, there is lot of cheap money, thanks to the world’s central banks wrong headed action of creating too much money.  So, lot of cheap money is chasing fewer goods.  Classic case of inflation.  The solution, the central banks to increase funds rate until the free money dries up.  It will take time for that.  In the mean time, companies that borrowed too much money will suffer.  Consumers will spend less as they are worried about job losses.  Company earnings will tank resulting in share prices falling.  In other words, stock prices will fall.  In my opinion, we are headed to a recession.  The only question is, how deep a recession will it be and how long will it last.  Already Great Briton’s central bank said UK will have recession in Q4, 2022 (starting Oct 1, 2022).[/quote]

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