Market Watch as the article U.S consumer prices surge in March, CPI finds, pushing inflation to 2 1/2-year high.
The rate of inflation over the past year shot up to 2.6% from 1.7% in the prior month, marking the highest level since the fall of 2018.
Inflation is officially only at 2.6% (the Fed has been trying to reach 2% for years). However, I have been warning my fellow MMT proponents not to say that there has been no inflation, so inflation is not a problem. I have been suggesting that MMT proponents ask themselves, “Why has there been no Consumer Price Index inflation? What in the economic environment could change that would cause inflation?”
There has not been Consumer Price Index inflation, but there has been stock market inflation because we have had massive monetary stimulus going to the oligarchs.
The change that is starting to come about is redirecting more stimulus to the people who need it most. If they now have money to spend, but the economy is hobbled by COVID-19 lock downs. (An example, I want to buy a whole house backup generator, but a lock down pause at he factory means they cannot deliver one to me until October).
Since the answers to my suggested questions are obvious with a moment’s thought by the economic experts, why haven’t there been plans put in place to handle these contingencies?
As I have been pondering these scenarios for over a year, I finally stopped procrastinating last April. I bought some GOLD ETF’s back on April 2, 2020 as a hedge against my predictions coming true. I hadn’t invested in gold since the 1970s before this.