The story unfolds over two years but the line of causality is direct...
Poster Comment:
Actually, the lockdowns delayed the inflation of currency that benefits those who get their hands on that money first. Lockdowns delayed Main St America from getting any money at all. A million small businesses went bankrupt. We are just now feeling the inflation of the currency that had already benefited Wall Street.
#1: Pinguinite To: Horse (#0)
Absolutely, and it's big finance that usually gets it first.
But it wasn't the lockdowns that caused inflation. It was greatly inflating the money supply as a "remedy" for the lockdowns. Ran the number yesterday. Some 41% of all M2 dollars in existence now were added to the economy since January of 2020. That is the reason for inflation. Higher gas prices are due to supply shortages which is not inflation, but would be the catalyst, I'd argue, for bringing all that excess cash forward into the general economy. Maybe the excess cash has been tied up in stocks and other finance instruments until now which is why inflation has been less visible.
Pinguinite posted on 2022-03-25 15:33:28 Reply Private Reply