One of your least informed pieces.
Every time the Fed buys bonds from the Treasury to fund government opeations which simply cannot be funded via taxes, or buys any assets whatsoever but does not use cash on hand, it 'prints' money. Electronically, of course, but that is the nature of most money now. Your pixels, so to speak. An accounting entry, really, but a very real one because the recipient gets to use the pixels to do whatever it wishes, i.e., buy arms, pay for bridges to nowhere, pay for Nancy Pelosi's liquor bills, etc.
Price stability was the norm in the US for nearly a century (periods of war excepted, of course). Serious inflation began with the creation of the Fed and skyrocketed with the abandonment of the last remnants of the gold standard in 1971.
Inflation is not the historical norm. It can be avoided.
The US had enormous economic progress during the 19th century with little inflation, but of course the gold standard prevailed. |
