A primer on inflation effects, FEDS conjure trillions of dollars out of thin air

[Scott Downey]

Once upon a time... 1% inflation was a major emergency | ZeroHedge

Governments cause inflation, the FED and them could care less about your savings.
85% of the dollar value gone in the last 50 years.
Try to make everybody rich by giving them lots of cash (what government socialists do), ends up making everyone poorer, hint inflation.

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"The lesson here is obvious: low prices aren’t engineered by the government. Congress can’t legislate price stability. And central banks don’t create price stability when they conjure trillions of dollars out of thin air.

Prices stay low when businesses are allowed to compete and innovate; when the government stays the hell out of the way; and when central banks refrain from manipulating the currency.

Unfortunately we don’t live in a world like that… which is why any rational person really ought to consider inflation in their long-term financial planning.

Remember, the Federal Reserve’s ‘target’ inflation rate is 2%. But over the last 50 years, the average annual inflation was almost twice that: 3.88%.

At that rate, the Fed has destroyed 85% of the dollar’s worth over the past five decades; they clearly don’t give a damn about the value of your savings."

 

[Van]

I think the primer should include the necessary government action to stem inflation, see first two years under Reagan. So Republicans (but not RINOs) oppose creating inflation, but Democrats create inflation so they can spend today, but pay with worth-less dollars tomorrow...

 

[Scott Downey]

Some Democrats in the house wont support the 1.2 trillion dollar spending if the senate wont pass the 3.5 trillion bill.

Congressional Progressive Caucus Chairwoman Rep. Pramila Jayapal (D-Wash.) said in a statement.

She added: "Our Caucus is clear: the bipartisan bill will only be passed if a package of social, human, and climate infrastructure — reflecting long-standing Democratic priorities — is passed simultaneously through budget reconciliation. We know that Congressional Democrats are committed to delivering immediate and transformational improvements for the lives of the American people, and will hold firm to meet that promise."

Democratic divisions still threaten Biden's $1 trillion bipartisan infrastructure deal - TheBlaze

Senator Joe Manchin seems to be saying he wlll NOT vote for the 3.5 trillion dollar democrat social engineering plan, partly due to inflation reasons.

Enter Sen. Joe Manchin (D-W.Va.). The moderate West Virginia Democrat issued a statement on Wednesday saying he has "serious concerns" about the size of the $3.5 trillion budget reconciliation package.

Manchin noted that Congress "has injected more than $5 trillion of stimulus into the American economy" since the beginning of the COVID-19 pandemic and that as a result, inflation is rising at rates unseen for decades.

"These are not indications of an economy that requires trillions in additional spending," Manchin said. "Every elected leader is chosen to make difficult decisions. Adding trillions of dollars more to nearly $29 trillion of national debt, without any consideration of the negative effects on our children and grandchildren, is one of those decisions that has become far too easy in Washington."

"Given the current state of the economic recovery, it is simply irresponsible to continue spending at levels more suited to respond to a Great Depression or Great Recession – not an economy that is on the verge of overheating," he continued. "More importantly, I firmly believe that continuing to spend at irresponsible levels puts at risk our nation's ability to respond to the unforeseen crises our country could face."

Manchin's vote is needed for the Democrats to pass the $3.5 trillion reconciliation bill. If he opposes the bill because it spends too much, he could kill it and progressive Democrats in the House will prevent the $1 trillion bipartisan infrastructure deal from passing there. House Democrats could also hold up the bipartisan infrastructure deal if they don't like potential changes or spending reductions to the reconciliation package Senate Democrats might make to secure Manchin's vote.

The Senate passed a budget resolution early Wednesday on a party-line vote that creates a framework for the $3.5 trillion reconciliation package, but the actual text of that legislation won't be released until the fall.