After the so-called Great Recession of 2008, the Federal Reserve (Fed) began buying up large quantities of bonds and other securities. This policy of quantitative easing (QE), as it became known, was part of the “pump priming” effort by the government to increase liquidity and stabilize the financial system in order to get the economy…
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With mid-term elections just around the corner, the Washington blame game is heating up. Republicans are asserting that the upsurge in inflation we’ve been living with since the beginning of this year is all due to the Democrats’ American Rescue Plan that pumped billions of unnecessary dollars into the economy. Democrats counter that the inflation…
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It must be really tough to be an economist right now. Ordinarily the data that feeds into their economic models is consistent enough to enable them to forecast economic downturns with better than 50% accuracy (although they almost never get the timing or the severity right). Today, though, it’s a different story. Economists are flatly…
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This is the third article I’ve written on this topic since inflation started spiking late last year. Currently we’re experiencing significant increases in the cost of gasoline, food, and other staples. And this is a world-wide phenomenon, not just in the U.S. With the media hyping the current level of inflation as the worst in…
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