Who could have predicted this? As CNBC reports:
The consumer price index rose 6.2% year over year and on a monthly basis, CPI increased 0.9%, both significantly above estimates.
Stunning. The goal of overshooting the arbitrary 2% inflation target has finally been met in a major way. Let’s see what two economic experts have to say.
In the wake of the American Civil War, one’s status as a veteran could bring significant social and economic benefits. Indeed, the Grand Army of the Republic would become an extremely influential interest group and helped fuel the early creation of an American welfare state for veterans. “Do it for the veterans” became a common plea delivered to politicians of the time.
There is never good reason to give up hope, and I’m convinced that the forces of freedom will prevail. Yet these are dark times for liberty. The rise of socialism is bad enough, but there are other dangers as well.
The Bureau of Labor Statistics reported Wednesday morning that prices rose 6.2 percent on a year-over-year basis in October. That’s the highest YOY rate since December 1990, when the Consumer Price Index was also up 6.2 percent.
October’s rate was up from 5.3 percent in September and remains part of a surge in the index since February 2021, when year-over-year growth was still muted at 1.6 percent.
Who should take the blame (or credit) for Cuba’s 6,900% inflation rate?
Before the answer is given, consider the history of fiat currencies, from Roman times to Kublai Khan, pre-war Germany, to recent popular hyperinflations such as Venezuela and Zimbabwe. The common denominator is always the same. In the case of hyperinflation, it is always the result of government intervention. Despite the history of currency debasement and collapse brought on through increases to the money supply, countries across the world still struggle with learning from the past.
Following the Treaty of Utrecht, which concluded the War of the Spanish Succession, both England and France found themselves hopelessly mired in public debt. Both, it turned out, hit upon a similar solution for trying to magic it away, and in the process sparked two of the more famous speculative crashes in world economic history.
