We’re on A Highway to Hyperinflation
The comments below are an edited and abridged synopsis of an article by Michael Snyder
The US House of Representatives has passed a $900 billion stimulus package designed to boost the economy—just like all the other stimulus packages since the beginning of Covid-19. Many Americans will soon receive $600 stimulus cheques, but it won’t just be US citizens who receive free money; families of illegal immigrants are also eligible.
In addition, there is a tremendous amount of pork in the spending package that the House authorized. The bill was reportedly 5,593 pages long, and representatives were only given a few hours to read it.
It will be weeks before we learn all of the insidious things that were snuck into this bill, because that is how long it will take for ordinary citizens to read it. As for members of Congress, many of them never will.
The truth is that the US doesn’t have $900 billion to spend on a stimulus package. Instead, the government will have to borrow $900 billion that the Fed creates out of thin air.
Needless to say, injecting 900 billion more dollars into the economy will be yet another massive shock for the money supply. Even without this new stimulus package, M2 has been rising at an exponential rate since the start of the pandemic due to the previous stimulus packages that Congress approved and all of the QE that the Fed has been doing.
Prior to 2020, we had inflation, but now we have entered a hyperinflationary phase. The US is going down the same path that Venezuela, Zimbabwe and the Weimar Republic went down.
Unfortunately, most Americans are not interested in discussing the inflationary effect that reckless spending is having. Instead, social media is full of angry comments about how these $600 stimulus payments are not nearly large enough.
This is one of the problems that happens once you start cruising down the road to socialism: People always want more. And Joe Biden is promising much more stimulus once he gets into the White House.
We are headed for an epic meltdown. We’re on a highway to hyperinflation, and our maniacal, free-spending politicians are behind the wheel.