Government spending has little, or no, effect on inflation, consumers do, exceeding supply. Interest rates forces you to stop buying so much. Why consumers? Because they have more money to spend. Inflation or recession. Take your pick. You think spending will slow without interest rates forcing it?
Don’t over complicate it.
Same ppl didn’t mind 8 trillion on Iraq based on admitted lies of WMDs
Consumer spending only causes inflation in the event there is a supply/demand deficit. Otherwise, consumer spending drives prices down on the principle of volume production.
Government spending drives inflation at about a 90% cause/effect ratio. Only the government can inject so much money into the market that the value of the dollar is forced down, simply due to the volume of available dollars. Further, the government spends at a rate that creates massive debt. Such that not only is the vast majority of the $34,000,000,000,000 debt accumulated in the last 56 years, but the debt now grows at the rate of $1,000,000,000,000 every 120-180 days, and now the government quite literally cannot service the interest on the debt it owes. As such, the government prints money. And every single time the government prints more money, the value of the money already in circulation plummets. Now the U.S. dollar, once the strongest, most valuable currency on the planet, so valuable that by far the vast majority of commodities world wide are valued in dollars, and purchased with dollars, is threatened with replacement.
It is very simple. It's proven, beyond any doubt in the minds of anyone with common sense. Again, Friedman, Sowell, and Laffer have all proven it repeatedly.
WTAF does Iraq have to do with this discussion? Speak to the subject of the discussion, or just don't speak. Inane, pedantic bravo sierra contributes nothing.
