Reader Post | By Richard H
Price (“$”) is a relationship between a Demand (“D”) and Supply (“S”) of goods; therefore, $ is determined by a given relationship of D and S; this relationship is known as the elasticity of $ to S and $ to D with elasticity determined by slope of the D curve and S curve at a given equilibrium $. The same holds true for an increase in the Money Supply (“$S”) for a given Money Demand (“$D”) which produces a money price or value (“$$”).
In the aggregate, for a given D, a decrease in S will produce a corresponding increase in $, inflation, given the elasticity of $ to S. And, a mismanagement of S or loss of S will increase $, causing inflation, as D is chasing too few goods. The opposite holds true for an increase in S for a given D, which will cause a decrease in $ or deflation.
So, after giving up much of our S to Chine, Biden comes in causing relationship issues with China, significantly affecting or reducing S, causing massive inflation. The proper response to such a loss of S would be to locate or build an alternate S; thereby, meeting D at the same $.
We did not have inflation during the Trump era; as, the increase in $S was matched with an increase in S, making everyone’s lofe better.
Not the Satanists at the Federal Reserve Bank (“Fed”). Instead, the Fed reduces $S, thereby leaving a lower $S to chase $D, causing inflation; this is furthered by increases in interest rates. The end result is a TAX ON ALL OF US AND MOSTLY ON THE POOR; while, owners of the Fed. Profit. Most importantly, the poor or fixed income persons only have so much $S. The Fed creates starvation so as to reduce inflation, EVIL; all while increasing profits for the private families who own the Fed. Truly evil.
Again, the correct response would have been to increase S to manage inflation. Instead, people were made to starve.
You can be certain that the Biden Administration and the Fed. know this, again EVIL.
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