El Reno, Oklahoma
October 29, 2022
I have gone down the rabbit hole here and not found the answer yet. Clearly too much money chasing too few goods causes inflation. Milton Friedman said that's the sole cause (as does Steve Hanke). Are there other causes? Hanke says no -- the other "causes" are not causes but noise.
This video adds a bit to my understanding -- but "reserves" aren't the money supply so I need to keep digging.
I'd feel better if Powell were an economist and not a lawyer. But clearly there are a lot of reallly smart people at the Fed. Too smart?
Too "smart" and too tunnel-focused on by-the-book policies. Any clown who has had a business in the private sector knows the answer:
-- too much money reduces the value of any one unit of it (like everything else);
-- as you deficit spend, you either (a) create money where it never existed before or (b) suck capital OUT of the private sector, making it harder for ALL businesses to thrive;
-- The Prescription: (1) drastically reduce the federal deficits and over spending; (2) drastically reduce the over regulation and federal micro-management of the economy; (3) break up the monopolies (google, the banks, the media); (4) pass tariffs on Chinese goods to foster a return to/of American manufacturing; and …