https://oceanstatecurrent.com/wp-content/uploads/2022/07/MMT.jpg 846 1280 Mike Stenhouse https://oceanstatecurrent.com/wp-content/uploads/2021/10/logo_white_300x56.png Mike Stenhouse2022-07-13 10:37:022022-07-13 10:40:399.1% INFLATION SHOCK! Recession Already Here? The Lesson …
Today’s shocking federal data showing a 9/1% year-over-year inflation rate should come as no surprise to anyone with a basic understanding of money-supply economics.
The LESSON that all lawmakers – state and federal – should keep in mind is that indiscriminate or wasteful government spending leads to increases in the money supply and the velocity at which money is spent; if continued unchecked, this pattern of ongoing spending – a major tenet of the left’s “Modern Monetary Theory” – will inevitably and eventually lead to higher consumer product prices … often at far greater rates than any increased in average income levels.
Further inflation may not be limited to national monetary policies and prices. Excessive government spending at the state level may likewise also contribute to local or regional inflation, and may be a major reason why the cost-of-living in northeast and west coast “blue” states may be significantly higher than in states where the size of government is kept in check.
As we warned, the left’s “Modern Monetary Theory” of spending, spending, and more spending … is causing an economic train wreck. Venezuela anyone?
Also, as Steve Laffey warned many months ago on In The Dugout with Mike Stenhouse, the Federal Reserve will now be forced to impose major interest rate hikes, likely amounting 150 or more basis points in the coming month … which, unfortunately, will hasten America’s fall into an official recession … a condition Laffey believes we are already in.
Tomorrow’s release of the Producer’s Price Index (PPI) will give further evidence as to whether or not consumer prices can be expected to continue to rise … or start leveling off.
Of the following two issues related to Rhode Island’s public schools, which one is a greater concern?