Inflation is cost of "bad government"

Inflation is boosted by the velocity of money [M2].

Bad government in the late 1960s and on through the 1970s led to excessive government spending and it seems that we are caught in that cycle again today [see photo].

Here are a few examples of what bad government has achieved over the past two years.

Lockdowns coupled with unprecedented government spending for more than two years set the scene for M2 led global inflation. Central Banks failed to respond to this flood of "free money" with increased interest rates [quantitative contraction] instead they continued a public policy regime of low interest rates [quantitative easing]. The result of these "loose" monetary and fiscal policies was more public debt. This "debt overhang" continues to grow today because the people in government are either incompetent [they "fail upwards"] or they are ideologues [Climate Change Warriors, etc]. Of course many of these folks are irredeemable combinations of both factors.

Supply chains have been disrupted for the past three years or so and this has led to serious bouts of dysfunction within the global economy. For instance, new cars are difficult to get so the cost of them has risen. As a direct result the cost of second-hand cars has also spiked as owners keep them longer. Governments who are committed to Climate Change public policies welcome these developments as they deliberately move the world off fossil fuels and onto renewal fuels. This is where ideology messes with competence. The ideologues think of a narrative - "save the world from Climate Change" - then they parade it as if it was a public policy initiative that could save us. Ha, ha, ha.... It is funny but it is also crazy. Those with the doomsday narratives about the world are strong advocate for the public policies that brought inflation [1970s style] to our kitchen tables.

Government is too close to the media today and this means that the narratives of the incompetent/ideologues who run our institutions today are never seriously challenged. Inside this prism of deception, lies, greed, and corrupt the commonplace practices of corporates [Disney] turn to mush. Mush is the end result of the actions of all who settle for the public policy prescriptions of those who "go along to get along". We have a globe Clique formed by government, media, and corporations that is willing to boost inflation to ensure that we pay for their decades of mismanagement. The magic of global inflation for those in the Clique is that they get to push the real cost of their mistakes onto you and me.

Richard.