It will be difficult to keep goods and services prices in check so long as our Federal Government spends money that we don’t have. If the latest pork-laden, $1.7 Trillion omnibus bill passes tonight, it will be a win for the political class and a loss for the American people. 2% CPI is not in the cards.
- We don’t have it to spend. $1.7 Trillion is money we don’t have which means the Fed will be required to inflate the money supply to subsidize the bill should it pass Congress.
- Don’t conflate “inflation” with price increases. It is important to note that the definition of inflation is growing the money supply without a commensurate increase in production. Price increases are a by-product of inflation.
- Good for me, not for thee. When the political class sells a spending bill as being good for Americans, the fact is that we pay for these bills via a devalued dollar / price increases – also known as the inflation tax – a tax that Americans do not get to vote on. The shit show continues. Merry Christmas.
Click HERE to read the latest, pork-laden, $1.7 Trillion omnibus spending bill.