2 weeks Stimulus checks are only a small part of the inflation problem in the United States. Reddit        

Seems like most people blame the inflation we are now experiencing almost completely on the stimulus checks. Not to say the stimulus money didn’t cause inflation because of course it did and a lot of it. But at the end of the day, the insanely low interest rates are more responsible.

For those that don’t know when you borrow money from the bank, you don’t really borrow money from the bank. The money is created by the bank out of thin air. You just borrowed money that never existed until you just borrowed it. So when someone goes and gets a loan they are basically getting stimulus money. Given the insane historic levels of debt being taken out, over the last 10 years or so and growing the latest stimulus is just a small part of the issue.

Those stimulus checks are like a fire hose being opened up full blast for a moment before the flow of cash is shut off. Low-interest rates are more like a garden hose slowly but surely devaluing the dollar down to nothing over time because the flow never gets shut off.

So you see if the Fed does not raise interest rates the crazy inflation will are now seeing we never stop until the dollar is no more. Interest rates have to be at a level that makes money uncomfortable to borrow.

The bottom line is if people are allowed to continue to borrow tons of cash at the insane levels that we have become accustomed to the days of the dollars reigning supreme are numbered.

submitted by /u/SallieD
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