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Economic Chronicle Economics is not a stable subject, because it has no clearly defined meaning. And therefore, exploiters use the subject to promote their motives; and the mess can't be straightened out. In general, economics mixes financialization with every imaginable, unrelated subject pretending that everything turns around financialization, is caused by financialization and must be dedicated to financialization at the detriment of the objective realities on those subjects. Therefore, more relevant than trying to describe the mess and create order in it is to document the ongoing frauds on the subject. An ongoing documentation becomes a chronicle. Approximately the most significant fact of this subject is that the Federal Reserve is usually assumed to have the responsibility of reducing inflation by increasing interest rates. The related frauds are stunning in the stupidity of assuming the objective realities of human existence can be reduced to financial manipulation and improved by the result. It's not uncommon for observers to state that there are causes and complexities in various activities which need other answers; and yet the same formula of financial manipulation is applied endlessly to the task. A point that needs correcting at the very beginning of economics is that financialization is not the answer to business activity but the insidious ruination of business activity. Time shows the results. Financialization means to do everything for a profit motive and use it as the excuse for destroying competition and fighting a war against the lower classes, which means 90% of society at the business rip-off level. To exaggerate and simplify for clarity, coming out of WW-II and the dirty thirties which preceded it, a bunch of problem solvers put together the modern social order with selfless purposes unrelated to financialization. Once the machine was up and running, incompetent corrupters took it over using such gimmicks as financialization, which reduced everything to fascist nonfunctionality. In other words, the purpose is the result. When the purpose is to produce better products and services for society, everyone benefits and profits take care of themselves. When the purpose is to rip everyone off, existence gets ripped off and nothing works. Financialization states that the only purpose that can be allowed in business is to rip everyone off. Incompetent corrupters need to rip everyone off, and they promote the financialization of everything as the justification for doing so. A common thread that incompetent conspirators have been harping on—in the face of a lot of contradicting evidence which is sometimes pointed out—is that government spending during the pandemic created inflation, which is Biden's fault and the reason why he is hated a lot. Even more money was given away during the Trump years. People got $1200 dollars during Trump years (due to Congress, not Trump) but only $600 during Biden years. Yet the result was supposedly to create inflation during Biden years rather than Trump years. That money was spent in about three months, which was a year and a half ago; yet incompetent jerks are claiming that it is still creating inflation. The government give-away didn't come close to making up for the trillions of dollars that were lost due to reduced activity during the pandemic, which of course was one of the causes of the inflation. It's shortage of money that creates inflation, not too much money. Inflation is defined as an increase in the cost of products, not the amount of money corrupters can rip off. Yet frauds keep trying to bend the concept around money supply.
During the pandemic, products were less available for several reasons including subversion of distribution but not due to government give-aways. Power mongers, who are always conservative, fascists conspirators, subvert the economy while liberals are in power trying to prove that liberals are the cause of problems and conservatives are the fixers. The recent subversions first became noticeable in the disruption of distribution which was inexcusable in the excuses and then became noticeable in unavailability of products which was inexcusable in the excuses. The endless talk is the Democrats' economy creating "unknown" effects in spending $10 billion per year on various things. Never is there a negative effect of the Trump economy, where $1.5 trillion was spent twice on Corporations. That's $3 trillion dollars of tax give-aways to corporations. Supposedly it allows corporations to expand and develop. When has government money been needed for corporations to expand and develop? Not since the thirteenth century. Only in the conservative world of austerity, small government and laissez faire. So corporations spent the money on stock buy-backs, which were illegal until banking laws were "deregulated." Those laws were created because of the "Robber Barons" of 120 years ago destroying the economy that way. Conservative states would not accept federal money for rent delinquencies during the pandemic, because government money for the needy would create dependency instead of a work ethic. What that fraud shows is that the evolving Nazism is an ethic. That ethic has always existed in power mongering conspirators who took over the social structures. What has changed in recent times is the demolishing of social structures preventing problems from being solved. The conspirators assume they can function better with chaos than ordered existence. Republicans in the Senate blocked a bill to provide assistance to veterans who were exposed to toxic substances, because a tack-on to the bill changed optional to mandatory for $400 billion of additional spending, where conservative states refused to spend the appropriated money for assisting the needy. Republicans were going to be forced to spend that $400 billion that Democrats were spending on the needy. That's $400 billion over several years, a few billion per year on the needy. Republicans said it would be deficit spending. If one item in government spending is deficit spending, it all is deficit spending. That didn't prevent Republicans from burning $3 trillion on tax give-aways to corporations. Their purpose in burning tax dollars on corporations which don't have the slightest use for the money is to prevent the money from being spent on the needy. Republicans as conservatives, which now days means fascists, are fighting a war against the lower classes and corrupting the corporations to do so. Analysts missed a major cause of labor shortage, which is no available and affordable child-care allowing women to go back to work. A lot of child-care was shut down during the pandemic and not started back up. With the lower classes being overwhelmed by unaffordable housing and health care, they can't afford the child-care required for going to work. The labor shortage shows up in many places, while analysts assume people are refusing to go back to work. That's a gross misinterpretation. The work-force is not there; and no one is living on air instead of working. There are several major reasons why the work-force is in short supply. One is because the migrant workers have largely been eliminated from the process. Another reason is the determination to bring the manufacturing back. There never was a large enough work-force in the U.S. for a globalized economy, which is the main reason why the factories left. Yet idiots are trying to create better jobs by implanting production into the U.S. economy. It's analogous to someone inventing a new form of transportation, building the prototype in their garage and then not allowing it to be built anyplace but in their garage. The biggest problem with the existing work force is that persons working for the minimum wage can no longer afford housing, let alone health-care and child-care. They lose money going to work, which prevents them from accepting low-paying jobs. And there is no welfare system, contrary to the assumption of imbecile bigots. Inflation is an increase in the cost of products. Any problem in production will increase the cost of products. The increase in costs is why consumers are concerned. Yet economists relate to inflation in terms of the money supply. It's total fraud, no different from relativity in physics or helicopters on Mars. Frauds need fraud for peddling their wares. Anything that makes products more expensive causes inflation. Could not screwing up the money supply make products more expensive? In "third world countries," a lot of money is sometimes printed which reduces the foreign exchange value and is called inflation. That doesn't happen in the U.S., and money supply is always on the shortage side rather than the excess side due to buying up of US dollars and selling products in US dollars. Then there is the 1950s concept that a "hot economy" would cause prices to increase due to increased demand outstripping supply. That type of economy was always increasing or decreasing. The increasing slope of the line on the graph would increase prices faster than wages were increasing. The decreasing slope on the graph was putting people out of work. So methods were always being applied to leveling off the slopes. Sometimes, "jaw-boning" down the price of steel would help. Sometimes, spending money on the military would move the line upward to put people to work. That type of economy doesn't exist anymore; yet economists still base their analysis on that type of economy. The economy changed drastically since the 1950s, because the cause-and-effect relationships were totally domestic then. That means the producers and consumers were interacting with each other. With globalization, the links no longer exist. Producers are in several foreign-worker countries, while most of the consumers are in affluent-spending countries. On top of that fact, the money supply no longer is controlled in the same manner in the US. Bank loans used to increase the money supply at the same rate expansion required the increase. Bank loans could be increased or decreased with interest rates controlled by the Federal Reserve. Nothing resembling that process exists anymore. Yet economists pretend that it is still how the economy is controlled. Banks no longer determine the money supply through loans, because the primary business model changed to venture capitalists financing the start-ups, while gamblers invest in expansion through the stock market. That process totally removed banking from the money supply. The Federal Reserve doesn't influence venture capitalists. So when the money supply needs increasing now days, the Federal Reserve buys up government bonds, which is called "quantitative easing." And influencing the money supply no longer influences the cost of products, because the products are being produced in other countries. Yet the fakes pretend that the Federal Reserve controls inflation. The reason why is to dominate and prevail, just as physicists glamorize fraud to dominate and prevail. Dominators are control freaks who monger power through fraud. There is now an economic problem which includes inflation. It is caused by incompetent fascists taking over the social structures and destroying what they control. It's a truism that exploiters eventually destroy what they exploit. Exploiters were riding high on the backs of other persons, until they got too successful and destroyed their exploits. They got too successful during Trump years through lawless take-over of everything. Now they can't manage what they control. The most obvious problem at this time is that supply chains are not functioning. Automobiles cannot be produced in adequate amounts due to the extensive supply chains that run across the globe. Guess how competent the fascists are in improving the supply chains. The first thing they did during the Trump years is to beat everyone up to get a better deal through infantile screwing around with trade agreements. Now the suppliers would rather build computer chips for toys than for automobiles. So the idiots assume they are going to move the supply chains to the US. That's like moving the ocean to someone's back yard to improving fishing. The reason why the factories left is because there are not enough workers in the US for globalized production; and any company that isn't globalized isn't relevant to Mickey Mouse. Yet the idiots assume they are going to produce their own products for US consumers, as if they were still selling horse harnesses in 1890. Bringing the manufacturing back, is what Trump called it. It's the same thing as brining the horses back. The ground is being bulldozed for the new projects in the US, because idiots need to cross their bridges before they can determine how stupid they are. They lack any ability to predict or evaluate, while they try to move the global economy into a shoebox. It's now impossible to build enough new houses for workers, which is causing an extreme shortage of houses. The reason why is not being said. It's because half of the house framers used to be immigrant workers who were shoved out to save jobs for "Americans." House framing is back-breaking work, which doesn't get done without immigrant workers. Conservatives have one battering ram against constructive government—the claim of deficit spending. The first fraud is that it is the conservatives that produce the significant deficits. Pouring $3 trillion dollars down a rat hole as tax breaks for corporations and the rich was deficit spending. The second fraud is that it is the absence of constructive purposes that cause deficits to increase. There was nothing gained in burning tax dollars by corporations and the rich. Corporations did nothing with their tax rip-off but buy back stocks, which used to be illegal and should be, and add bonuses for managers. Creating constructive and necessary government programs allows deficits to be reduced by increasing economic activity and putting people to work. Instead, conservatives put people out of work as the supposed method of paying off loan sharking, called austerity, and refuse to allow social programs to benefit the needy, which would improve economies in the most effective way. It is what money is used for that determines whether deficits are increasing or decreasing, while conservatives burn tax dollars to prevent them from being used for necessary social programs. The underlying motive of conservatives cannot be ignored in such destructiveness; it's their need to destroy the lower classes and outsiders as their only method of dominating to make themselves winners through incompetence. Without that motive, supposedly, no one would have a reason to be the destroyers (now fascist transforming into Nazis) that conservatives are. Was it unfair to paint conservatives with a negative brush in the past? Now conservatives are showing us what they do with power; they are using Jim Crow laws to make sure they never lose another election in their drive to Nazism. They needed to be criticized a lot more thoroughly a long ways back.
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Power mongers have been ripping off trillions of dollars per year without the slightest influence upon inflation for several decades, because money supply has nothing to do with inflation. Of course, various social problems can create inflation by making products harder to get, which can include screwing up the money supply, but only in an indirect manner if products are in some way made less available.