Ep. 434: Why We Have Inflation

Published: June 14, 2021, 1:10 p.m.

b'"Rewarding Non-Productive Activities with New Money Leads to Price Inflation":\\nThe punchline is that a significant percentage of new money creation over the past year was allocated to non-productive use cases. \\u201cHelicopter\\u201d money to individuals and non-performing firms are two examples. When capital is deployed for non-productive use (acquiring cryptocurrencies for example), that capital invariably bids up prices causing asset price inflation. Conversely, recipients that are able to deploy capital in a productive manner (small software development firm for example), create value through production of goods and services (Software products in this case), which does not lead to asset price inflation. Below we have included two charts published by the Federal Government which illustrate our point and speak to the asset price inflation or \\u201cbubbles\\u201d we have voiced our concern about over the past 14 months. (more....)\\n\\nRead the full article here: https://tek2day.com/2021/06/09/why-we-have-price-inflation/'