Is it just possible that a good portion of the "inflstion" we are hearing about daily is

[Amishman]

41. that's a significant factor, but most of it is driven by monetary policy

reposting, because this is a big deal and I don't see many people talking about this. It is easy to blame corporate greed - especially when it is real and a significant factor - but we need to understand the whole picture.

The increase in the amount of money in circulation is a major driver of inflation, and the Federal reserve is responsible for an absurd amount of back-door money printing with their asset purchase program.

The Fed's balance sheet peaked at 8.962 trillion.

Feb 2020 it was 4.166 trillion.

They have started unloading their mountain of securities, but the balance is still 8.822 trillion.

You can't grow the money supply that rapidly without steady inflation.

M2 money supply was 15.458 trillion in Feb 2020. It is now 21.709 trillion. We increased our money supply by a third without growing our actual GDP by anything like that much. Prices will continue to rise to rebalance vs the money supply. Worse, inflation changes spending habits (increasing the velocity of money), acting as a multiplier for that money supply growth.

We're actually fortunate that prices are somewhat sticky, meaning the glut of capital pumped into the economy is very delayed in its impact. There is still time to get the Fed to accelerate their mountain of securities and pull back in the excess liquidity before prices align with the overall money supply.

Until the money supply is reduced by unwinding that excess liquidity, inflation will keep erasing Americans finances. Simply too much money in circulation.