Democrats and Inflation

One of the jobs of the Federal Reserve is to insure that inflation doesn’t get out of control and become hyperinflation. With regular old inflation your money is worth less, but with hyperinflation your money is worthless. Inflation is defined as either a rise in prices or as an increase in the money supply. Since the 2008 financial crisis, the Federal Reserve has created trillions of dollars in “quantitative easing,” or QE, thereby inflating the money supply. An Aug. 14 paper at the Heritage Foundation shows that the Fed’s balance sheet has increased from $850 billion to $4.4T since 2008. The inflationary impacts of this policy have not been felt because the money created in QE is said to have been "sterilized". At the Journal, Jon Hilsenrath also explains “sterilized QE,” Operation Twist, and other Fed tactics. One way to fight inflation is to “freeze” the money supply; stop adding to it. The Fed is moving toward that...(Read Full Article)

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