Issue #1: There is unprecedented inflation, actually
Posted on: December 27, 2016 at 10:07:09 CT
ummmm MU
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when you use the proper definition of inflation, which is an increase in the money supply (or perfect substitutes). However, even if we use the bastardized definition of inflation, there is plenty of inflation: (a) CPI under reports inflation, (b) Price inflation is found in equity markets, rent, college, health care, housing.
Issue #2: Though the issuance of government bonds (repaid through taxation) is a big issue, that is not the issue here. The issue here is the Federal Reserve creating money out of thin air to purchase US bonds from indirect holders, which in effect monetizes the debt and allows out-of-control government spending to continue for just a little bit longer.
Edited by ummmm at 10:09:18 on 12/27/16