KINSLEY GAFFE: Top Democrat Acknowledges the Real Cause of Inflation.
In many ways, Rep. Ro Khanna is a far-left progressive. But the California Democrat also happens to be honest, and more prone to moments of genuine introspection than most in his party. Such was the case when Khanna appeared on Fox News on Sunday and acknowledged one of the biggest causes of our inflation woes that—because it’s politically inconvenient—most Democrats have refused to admit.
“I agree that there’s inflation, prices are up… there are two reasons for that,” Khanna said. “First, the Federal Reserve had quantitative easing for way too long and that was one of the main, primary culprits of this. They didn’t anticipate the inflation, monetary policy is largely determined by the Fed.”
What the congressman is referring to as “quantitative easing” is loose monetary policy, or, crudely simplified, the central bank’s printing of new money. As I’ve previously explained for BASEDPolitics, the Federal Reserve created trillions of new dollars out of thin air to “stimulate” the economy during the pandemic. This had the inevitable effect of making the dollars currently in existence less valuable.
Why, it’s as if “Milton Friedman isn’t running the show anymore.”