{"id":29916,"date":"2023-01-29T11:41:46","date_gmt":"2023-01-29T16:41:46","guid":{"rendered":"https:\/\/ssgreenberg.name\/PoliticsBlog\/?p=29916"},"modified":"2023-01-29T11:45:51","modified_gmt":"2023-01-29T16:45:51","slug":"what-causes-inflation-economists-radhika-desai-michael-hudson-explain","status":"publish","type":"post","link":"https:\/\/ssgreenberg.name\/PoliticsBlog\/2023\/01\/29\/what-causes-inflation-economists-radhika-desai-michael-hudson-explain\/","title":{"rendered":"What causes inflation? Economists Radhika Desai &#038; Michael Hudson explain"},"content":{"rendered":"<p><em>YouTube <\/em>has the video <a href=\"https:\/\/www.youtube.com\/watch?v=ZhZbB0jjDTM&#038;t=33s\" rel=\"noopener\" target=\"_blank\">What causes inflation? Economists Radhika Desai &#038; Michael Hudson explain<\/a>.<\/p>\n<blockquote><p>\nIn this episode of Geopolitical Economy Hour, economists Radhika Desai and Michael Hudson discuss inflation: what it is, what causes it, and what are the problems in how the Federal Reserve and other central banks respond to it.\n<\/p><\/blockquote>\n<div style=\"text-align:center\">\n    <iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube-nocookie.com\/embed\/ZhZbB0jjDTM\" title=\"YouTube video player\" style=\"border:thick ridge #009900;\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div>\n<pre><\/pre>\n<p>They start off with the point I have been making for years.  The rise in asset prices like the stock market prices is a form of inflation that everybody likes.  There is no complaint when stock prices rise.<\/p>\n<p>In the comments I inserted this.<\/p>\n<p>Let me see how people here take to my explanation.  Private banks do not create money.  They create promises of money.  The promise is that if you  ever need &#8220;real&#8221; money from the private bank, they will find enough &#8220;real&#8221;  money to satisfy your needs in the form of Federal Reserve Bank money. One example shows what I mean.  When you go to a bank&#8217;s ATM to withdraw money, you get Federal Reserve Notes.  You don&#8217;t get anything that represents private bank money.<\/p>\n<p>Another question to ask, is &#8220;If private banks create money, why don&#8217;t they just create more of it when there is a run on a bank?&#8221;  <\/p>\n<p>What is it that the Federal Reserve Bank creates that satisfies the demand that private bank money cannot satisfy?  <\/p>\n<p>Where is the debt that came from the trillions of dollars the fed created to stop the crash of 2008\/2009?  The only debt was the USA government&#8217;s promise that you could pay your taxes with Federal Reserve Bank money.  Why did China need so much Federal Reserve money when they were not subject to USA taxation?<\/p>\n<p>You can find the transcript on the Geopolitical Economy web site article <a href=\"https:\/\/geopoliticaleconomy.com\/2023\/01\/27\/inflation-economists-radhika-desai-michael-hudson\/\" rel=\"noopener\" target=\"_blank\">What Causes Inflation?<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>YouTube has the video What causes inflation? Economists Radhika Desai &#038; Michael Hudson explain. In this episode of Geopolitical Economy Hour, economists Radhika Desai and Michael Hudson discuss inflation: what it is, what causes it, and what are the problems in how the Federal Reserve and other central banks respond to it. They start off [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[166],"tags":[],"class_list":{"0":"post-29916","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-stevegsposts","7":"czr-hentry"},"_links":{"self":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/29916","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/comments?post=29916"}],"version-history":[{"count":3,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/29916\/revisions"}],"predecessor-version":[{"id":29920,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/29916\/revisions\/29920"}],"wp:attachment":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/media?parent=29916"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/categories?post=29916"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/tags?post=29916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}