With all the stimulus payouts causing trillions in additional debts, why haven't we seen a significant spike in inflation?
Where would be the best place to shelter your money?
- Jeff DLv 73 months ago
You will. However, there's always a lag between when the money supply is expanded and when inflation hits. The lag is due to monetary velocity. To briefly summarize, inflation (and deflation) are not strictly functions of how much money is the system, they are functions of how fast that money is moving through the system. Right now, monetary velocity is extraordinarily low. Banks are turtled up, businesses are hunkered down, and many consumers are saving or paying down debt (and buying only essentials). When the economy recovers and starts to take off, then we'll see the inflation.
- ?Lv 73 months ago
We are not seeing a spike in inflation because the country has sunk into a recession.
There are too many goods left on the shelves of stores that have not been sold.
You see ad after ad on Facebook about stores selling off their stock that has not sold at deep discounts.
Once this clears up and the price of gas goes up significantly that is when inflation will hit with a vengeance.
- midnyteryder1961Lv 73 months ago
Probably gold, or foreign investment. Democrats have no interest in strengthening the US dollar.