[tophcfa]

Originally Posted by lkagele

Actually, it's not really a good summary. Yes, you can point to certain categories where inflation is due to unusual factors like supply chain issues. The real problem, however, is the government spends more than it brings in. The government issues debt (treasury bonds) and the Federal Reserve buys the government debt simply by printing money out of thin air.

Currently, the Fed is buying $120 billion worth of treasurers per month. The Fed does this by simply printing money with absolutely nothing to back those new dollars. So, with the addition of all those new dollars, the existing dollars are diluted resulting in an increase (inflation) in the cost of everything. $10 dollars used to buy one widget but now because of the artificially produced dollars, it take $11 dollars to buy that widget. As government excess continues, next month it will be $12.

The more government spends beyond what it takes in, the higher the inflation rate is going to be. If you think it's bad now, just wait until these political idiots pass the infrastructure bill. Think about this. How long would it be before you would have to declare bankruptcy if you spent 20 or 30% more each year than you made?

IMO, the best investments right now are gold, silver, canned goods and ammunition.

Good to see that somebody gets just how fiscally irresponsible the Federal Reserve has been for many years running. Their actions were eventually going to hit the fan.