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View Full Version : Anybody here knows the reason of why there is an inflation in USA?



WideAwake
4th October 2015, 03:08
Dear comrades, one of the main reasons of why i've decided to be a marxist, a radical leftist some years ago is because i love food, and under the free market capitalist economic model the incomes of the majority of people in USA (wages, food-stamps, etc.) stay the same and never go up, while the price of food like butter, eggs, meat, milk, vegetables, etc. are lately rising pretty fast almost every month and/or every week. I've noticed the rise in the price of butter, and eggs at Wal Marts and many other grocery stores.

I would like to know if we are in the middle of an inflation and is the inflation created by the deficits and the national debt which is around 200 trillion dollars (Internal and external)

Because every thing in America is getting real expensive, while the conformist masses do not even protest.

Aslan
4th October 2015, 04:32
inflation is caused by the over-minting of money. but more money gets in the hands of the elite.in a perpetual snowball effect of gathering more and more... Leaving the masses with less money to move around...

tuwix
4th October 2015, 05:29
Dear comrades, one of the main reasons of why i've decided to be a marxist, a radical leftist some years ago is because i love food, and under the free market capitalist economic model the incomes of the majority of people in USA (wages, food-stamps, etc.) stay the same and never go up, while the price of food like butter, eggs, meat, milk, vegetables, etc. are lately rising pretty fast almost every month and/or every week. I've noticed the rise in the price of butter, and eggs at Wal Marts and many other grocery stores.

I would like to know if we are in the middle of an inflation and is the inflation created by the deficits and the national debt which is around 200 trillion dollars (Internal and external)

Because every thing in America is getting real expensive, while the conformist masses do not even protest.

The main cause of inflation is money supply that is bigger than supply of commodities. Usually it's due to printing money. The US government is printing money in process called 'quantitative easing'.

Other causes of inflation is increasing prices of commodities from abroad. Usually it happens due to increase of oil price, but now the price of oil is on one of lowest levels, so it is irrelevant now.