Shark Tank investor Kevin O’Leary slammed the Biden administration for appearing confused that inflation isn’t just the temporary economic downturn they wanted you to believe it was.
Biden admin and Democrats have blamed the war in Ukraine, corporate greed, and even the consumer for inflation but the reality is they dumped trillions of printed money into the system and watered down the US dollar.
O’Leary bluntly explained why Americans are experiencing the highest inflation in generations. “The printing presses have gone insane,” O’Leary said. “That’s why we have inflation in the first place.”
By printing presses, O’Leary is talking about the Federal Reserve. The central bank has been expanding the supply of money for decades, and the clip has picked up in recent years. Nothing, however, has compared to the monetary expansion that occurred during the pandemic, something Fed Chairman Jerome Powell recently admitted in a 60 Minutes interview with Scott Pelley.
“You flooded the system with money,” the CBS journalist said.
“Yes, we did,” Powell responded.
This is what O’Leary is getting at. “Flooding the system with money” is what drove inflation to historic highs, and the result was always an obvious one.
“For all the talk of inflation, you print $6.72 trillion in thirty months, what the hell did you think was going to happen?” O’Leary says. “Of course there’s going to be inflation.”
O’Leary’s figures are not wrong. Federal Reserve data show that in August 2019 there was $14.9 trillion total in circulation. By January 2022, there was $21.6 trillion.
In other words, more than 30 percent of dollars in circulation in January 2022 had been created in the previous 30 months.
For O’Leary’s full take and investment tips you can watch his interview here:
Democrats have repeatedly denied involvement with inflation when the experts have been clear, it’s caused by printing to much money and driving the value of the dollar down. The issue we now face is that it’s not a short-lived downfall despite what the Democrats have claimed. You don’t have to take my word for it, inflation forecasts have triggered a Nixon-era law that raises the living wage for social security beneficiaries. That law made room for the temporary waxing and waning of the economy—Just think about that.