![]() I'm not saying it's new, just that we've entered a new phase where the second order effects are becoming significant - the rate must increase at a faster and faster rate to prevent collapse. That is the definitive cause of inflation. People and institutions are getting paid without producing anything. It will remain hidden for a while, but you can't print money at that rate and not have it show up in inflation. So the CPI is basically imaginary, like the Unemployment numbers, which don't include anyone who has used up their unemployment benefits or just gave up looking.) (I would just add that minor items such as the cost of fuel and housing are not included in the Consumer Price Index, and a lot of other factors are fudged. Be prepared to pay a LOT more for goods in the near future. IOW, our economy is now being inflated at 12% per year (I'm going with the number I recollect). ![]() I'm too lazy to go back and look up the numbers again.) If 60% of spending is borrowed, rather than 40%, then that would be about right. ![]() (Actually my memory says that the number is more than 12% but I don't know which of the above is incorrect. 6*.4*.4 = 9.6% of the GDP is pure inflationary money-printing. The Federal Reserve is essentially printing money by loaning this imaginary money to the US. 60% of that borrowing is being lent by the Federal Reserve, as the world's appetite for US government debt is no longer enough to swallow it all.Ĥ. The US Government spending is now over 40% of the Gross Domestic Product (GDP).Ģ. I might add that, as of a month or so ago (last time I checked), the following items were true - from memory, so I I may be a bit off:ġ.
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