HunterBeast on Nostr: Few have the realization, spending money without having money is monetary expansion. ...

Few have the realization, spending money without having money is monetary expansion. This is what happens in fractional reserve systems, and American banks been operating without reserve requirements for years now.

In fact, few even admit that monetary expansion is the leading cause of price inflation. Supply chain crunches are often blamed, but are resolved over time as prices are allowed to rise. Commodities generally have elasticity of supply, meaning, more is eventually produced when the price goes up.

Corporate "greed" is another excuse I've heard, but that goes by another name: fiduciary responsibility. Besides, it's easy to make record profits when there is record inflation.

These facts are obvious in hindsight to anyone willing to humble themselves enough to learn, but... Such humility often misses those with high time preference. Few.