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][quote=Anonymous]Come on, people, this is Econ 101. We are coming out of an economic shutdown. Prices are higher than a year ago because a year ago everything was terrible. Suppliers, shippers, producers, employers, and employees are all going through transitions and replacement cycles that would have happened gradually but were stopped for a year and are now accelerated by the rapid recovery. Give them a few months to figure things out. Demand exceeding the supply capability is a great problem to have. The first reaction is higher prices, but the long-term response is increased production and improvements in supply chain productivity and efficiency. [/quote]

You're right it is Econ 101 - yet again, another govt made problem by being too lax with fiscal spending and monetary policy. That's what happens when you keep handing out stimmi checks, govt hand out after govt hand out, and keep printing money.  The USG inflated the money supply by 25% in about 1-1.5 years.

It is a diabetic sugar rush.  It is only a matter of time before the crash occurs. [/quote]

Uhhh wasn't the last stimulus check all the way back in March?  And we're to understand that $1400 has had Bubba living in the lap of luxury ever since...  [/quote]

A trillion $$ was handed out in March doof.  All of that money is sitting in peoples' bank accounts and has been for many months. They're unloading it on the economy over time.  That's why you have inflation.  Too much demand because the moronic govt injected far too much cash in the system.  That's on top of the Federal Reserve massively expanding the supply of money and keeping interest rates down.  It's all a house of cards build on a diabetic sugar rush.  The last round of stimmi in March should have never been handed out in the first place.  China shut down everything and was far more muted in their govt spending and stimulus. That's why they don't have nearly anywhere near as bad inflation. They were patient and waited it out.

US now has inflation as bad as Turkey, Brazil, Russia, Mexico, and Venezuela....what a crowd to be in. [/quote]

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