Supermarket prices soar U.S. money supply surges 30% in just the past few months Biden also plans to release $4 trillion -U.S. Inflation is coming

Americans who have been shopping at supermarkets recently have found that spending $100 can only buy food that used to cost less than $80. Ms. Ria, who lives in Alhambra, California, said: beef used to be about $5.99 a pound, but now it has risen to about $12; leeks have become $3 a pound, compared with $1.25 before; and rice, noodles and other staples have also risen by about 5%.

The U.S. Consumer Price Index (CPI) rose 4.2% in April from a year earlier, the largest year-over-year increase since the 2008 economic crisis; the Producer Price Index (PPI) rose 6.2% in April from a year earlier, a record high since 2010.

Business Insider quoted Jeremy Siegel, a leading economics professor at The Wharton School of the University of Pennsylvania, as saying that the U.S. inflation rate will Within the next two or three years, the inflation rate will exceed 20 percent, equivalent to the hyperinflationary scenario in the United States in the 1970s.

Economists have given two reasons for the spike in inflation.

One is the “unprecedented” fiscal stimulus, which is linked to the New Guinea virus outbreak. In order to avoid a long and painful recession caused by the epidemic, Biden came to power and launched two consecutive trillion-dollar stimulus packages, and by March 2021, the cumulative size of the U.S. fiscal stimulus had reached $5 trillion. According to the New York Times, the U.S. government also plans to release nearly $4 trillion in the near future, including a $2 trillion infrastructure program and a $1.8 trillion household program.

Then there is the surge in the U.S. money supply, which has increased by nearly 30 percent this year alone. To shore up economic markets and avoid a second Great Depression, the Federal Reserve has put trillions of dollars of money in the past three months, resulting in the largest expansion of the money supply since the Great Depression. The year-over-year percentage change in the M2 supply of U.S. money has reached 23%, and according to Federal Reserve records dating back to 1981, the year-over-year growth in the M2 money supply has never exceeded 15% until 2020.

Morgan Stanley (Morgan Stanley) chief equity strategist Wilson (Mike Wilson) said: the risk of rising inflation may also be greater than ever, although this has not yet manifested itself in interest rates, but the bond market inflation expectations and the sharp rise in precious metals signals that higher inflation may be on the way.