US Federal Reserve raises interest rates for first time since 2018
Inflation is almost 100% caused by &quot;too much money&quot; chasing &quot;too few goods&quot;.<p>&quot;Too much money&quot; is a condition almost always caused by the creation of too much &quot;fiat currency&quot; (ie a currency that is backed by nothing but the good faith and credit of the issuing government)<p>As we all should know, in the US, on 6&#x2F;5&#x2F;1933 FDR took the US off gold-backed currency and started the fiat currency situation we still find ourselves in.<p>Over the past 13 years, the US M3 money supply (see <a href="https:&#x2F;&#x2F;fred.stlouisfed.org&#x2F;series&#x2F;MABMM301USM189S" rel="nofollow">https:&#x2F;&#x2F;fred.stlouisfed.org&#x2F;series&#x2F;MABMM301USM189S</a> ) has grown from around $7.5T to $22T.<p>This number represents the &quot;too much money&quot; part of the original equation, and to be honest I&#x27;m quite surprised that price inflation isn&#x27;t significantly worse then what it currently is.  This is almost certainly being caused by the fact that the US dollar is the world&#x27;s Reserve Currency.<p>Looking at the graph, starting Aug 2020 the line is starting to approach vertical, so it should be completely unsurprising that price inflation is occurring.<p>Finally, a 0.25% increase in the Federal Funds Rate is laughably small, and will do absolutely nothing to help with the price inflation the US is currently seeing.