I don't disagree with any of that. But the notion that stimulus in 2020 is to blame for the huge inflation we're seeing right now across the entire globe is just silly. I was merely citing that this is a global issue caused by global supply chain issues.
No, you continue to argue strawmen and purposefully misrepresent what I said. I didn't say it's "completely irrelevant" either. From the beginning I have been talking about the global inflation we're seeing, and that is due to global supply chain issues. Any inflation from US stimulus is a small piece of US inflation. But US stimulus isn't causing the entire planet to experience inflation LMAO, and it certainly isn't causing the 5%+ inflation we're seeing here at home. And we KNOW this because when you look at the basket of goods used to calculate inflation, you can directly trace much of it back to supply chain issues.
I generally agree with you. Global economy is one of the easiest things to oversimplify, and one of the hardest things to actually understand. Economists don't fully understand it, that's why they spend decades publishing theories and creating models to understand it. It isn't a pure science because human behavior plays a large part, and human behavior gets very unpredictable.
I don't think that's quite how it works. https://fred.stlouisfed.org/series/M2V. It is essentially "the number of times one dollar is spent to buy goods and services per unit of time." It's the rate of money turnover. It's not independent of amount. V is calculated by dividing the nation’s economic output, nominal GDP, by the money supply. It does produce a "rate," but it's important to note it is based on amounts too. One of the main uses is to understand if people are spending or saving.
I don't know why those two statements are so hard for you to reconcile. The majority of the inflation we have today is due to a supply-demand imbalance. In principle and in theory, stimulus would cause price inflation, but right now we can trace most of the CPI basket increases to supply constraints.
Don't let the door hit you on the way out LMFAOLMAO why am I not surprised you would end up here. You don't even know what the chart you cited represents.
I never said it doesn't contribute to inflation. I said it doesn't create the inflation we are seeing TODAY. FFS. Grow up. Go learn economics.
Edit: Wow this entire thread is even dumber than I initially realized. Out.
I would argue that human behavior is VERY predictable. The whole pandemic and now climate change hoax are based on it. Humans historically do the same things over and over. Economists make excuses, it's not complicated at all. Politics are the only x factor.
Supply is down, demand is the same. Inflation is through the roof because the Fed keeps printing money. Everything costs more and sellers are passing that on to us
We're saying the same thing. The amount is a constant during a set period of time. It's accounting for currency changeover instead of just adding up transaction totals. Otherwise it would look like the economy is being over-spent, even when accounting for debt.
Humans generally do the same things repeatedly, however, when governments step in and do things like send a few thousand dollars to everyone with the expectation that they spend it, it is surprising when they don't. Usually other factors are ignored or discounted. But if it was easy, the economy would keep rolling, full steam ahead. Spending patterns, hiring patterns, and labor patterns don't stay the same because other factors alter human behavior in ways that are unintended or unplanned for.
I know I'm being a little pendantic, but the FED doesn't print money. They order additional currency, usually by purchasing debt. The treasury prints notes to guarantee payment on the debt purchased by the FED.
Since we're on the topic, the Federal Reserve is not Federal or a reserve, they are a third party entity and there is no gold or real value backing our money.
