Staff Reports
In a recent article, it was discussed that inflation, which causes poverty, is not being caused by the Federal Reserve, as commonly believed. The writer pointed out that Vice President Kamala Harris wrongly attributed inflation to the COVID crisis and greedy retailers, when in fact, the actions of President Joe Biden and herself were the true cause.
The article highlighted that shortly after Biden and Harris took office in January 2021, they significantly reduced domestic oil production, leading to a drastic increase in oil prices and a sharp rise in inflation rates. However, the inflation chart being used by the administration was called into question for being misleading, as it showed inflation peaking six months later than it actually did due to averaging calculations.
It’s Not the Fed That’s Causing Inflation – American Thinker https://t.co/YwhgvDmCMZ
No, Kamala — it was caused by you and Joe, and no one else.
— Patrick Durina/ (@durinap20) September 9, 2024
Drawing on historical examples from the 1970s and the Obama administration, the writer argued that government spending and increasing the money supply did not directly cause inflation. Instead, it was the rise in oil prices that drove inflation during those times. The article also mentioned the impact of oil prices on the prices of thousands of everyday products, highlighting the causal relationship between oil prices and inflation.
Furthermore, the writer proposed a solution to combat inflation by restarting oil production in less costly wells that had been shut down by the Biden administration. It was emphasized that inflation disproportionately affects the poor, who have no means to defend themselves against rising costs of goods and services.
In conclusion, the article refuted the notion that the Fed was responsible for inflation and criticized the misattribution of blame to the money supply. The writer, James T. Moodey, a retired entrepreneur and economic essayist, urged for a deeper understanding of the root causes of inflation and advocated for policies that address the true factors driving inflation, such as energy production.
