Some say that inflation is caused by "Too Much Money Chasing Too Few Goods"?
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Economists, talk show hosts and "experts", like to repeat that line. Over, and over, and over.
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But, is it true?
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The Federal Reserve said that in April 2008, our money supply was $7.7 trillion.
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Lately, "financial leaders" (yikes!) have added, or are adding $8.5 trillion to our money supply.
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Umm... I thought we were worried about having too much money?
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Wow. They have just borrowed more money, than we have in our total money supply! And that money was a loan too!
Hmm... do ya think that will be a bit hard to pay off?
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When the new round of borrowing begins to get paid back, prices will be bid up, not because there will be too much money, but because there is too much debt! - they will be sliding the prices upward to capture enough existing loan principal in ther economy, to pay the interest on their own loans.
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You want to see inflation?
Wait until these new loans come due.
..Wait until these new loans come due.
