Inflation is affecting all of us right now. And for many of us, we personally feel the hit in our wallet and our bank accounts. I've calculated that it's costing me and my family right at $8,000 per year just on the basics of fuel, food, and utilities.
I shouldn't have to write this disclaimer but in today's political climate, I feel I should. This is not a political or a partisan opinion. Although I do have plenty of both of those, I intentionally keep them out of my blog.
So who or what causes inflation? The answer is very simple thus this blog will be short. Here's a hint: It's not the Federal Reserve.
Inflation is caused when the supply of money in circulation grows larger and the quantity of goods and services on the market doesn't grow to match it.
Who really controls the money supply?
No institution has direct control over the economy but the government IS in direct control of the money supply. As a result, the government causes inflation.
Everytime inflation occurs the government is responsible. Please don't listen to lies, spin and misdirection that tries to blame it on others. Whether that's "greedy" labor unions, "greedy" corporations, "greedy" banks, the Federal Reserve, foreign countries or U.S. consumer habits.
It's always and only the government and its policies that is ultimately responsible for inflation.
However, the government is responsible to the public and the public has a tendency to want the government to print more money. This can produce short term benefits but leads to long term problems like inflation.
What can you do?
The current generation of politicians in Congress of both parties are only the latest manifestation of the problems that have led us to this current situation we're in. If we want to fix this problem, we also need to realize who is actually responsible for fixing it.
That answer is also relatively simple. The answer is looking back at you everyday in the mirror. We have to elect new and better leaders in both parties.
Politicians are like diapers, they need to be changed often and for the same reasons. -Mark Twain
Keep that in mind next time you vote.
You need a plan
If you're interested in "beating the market" or finding the next "hot stock" we can't help you.
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