by Peter Schiff at Schiff Gold
Putin is causing inflation. Greedy corporations are causing inflation. COVID-19 caused inflation. We hear all kinds of reasons for the recent spike in prices. And now we have a new one. It’s the millennials’ fault.
This is all wrong and it illustrates the problem with redefining inflation to be something it isn’t.
Smead Capital Investment chief investment officer Bill Smead told CNBC the size of the millennial generation is causing inflation.
“See, what everyone is not including in the conversation is what really causes inflation, which is too many people with too much money chasing too few goods,” he said, explaining that there are roughly 92 million millennials.
“So we have in the United States a whole lot of people, 27 to 42, who postponed home buying, car buying, for about seven years later than most generations. But in the past two years, they’ve all entered the party together,” he said.
Smead actually gets closer to the cause of inflation than most. He at least recognizes that more dollars chasing the same amount of goods and services causes prices to rise. But he leaves the key question unanswered – where are these people getting all of these extra dollars?
If the number of dollar…
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