The country’s Treasury Secretary reportedly expressed her surprise at the inflation number. Consider. The purported job of this one-time Fed Chair was to monitor the integrity of the nation's monetary system.
She, with her stable of 400 Phd economists – steeped in such esoteric language as measuring the velocity of the ding-dong times the second derivative of the dooh-dah – was somehow taken aback by what a bright Fourth Grader could grasp i.e. the more money you print the less value each unit would have.
Yes, print. Cut to the current Chair of the Central Bank (Fed) and spend literally thirty seconds to see through years of obfuscating terms like quantitative easing for a peek at a fundamental truth (Jerome Powell - we print money - 60 minutes interview). The current inflation story may indeed be quite serious but perhaps really not all that complicated. The Beginner’s Mind might behold it in terms of simply market place distortion.
After all, inflation showed up long before we could even spell CPI. It started in the form of asset-price inflation. The soaring nominal price of things like stocks, bonds, and real estate largely reflected the unnatural growth in money supply. Together with the artificial suppression of interest rates, the so-called asset bubble exploded, serving to enrich a certain subset of the population, i.e. the asset owners. It added little to real economic growth…
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