Value of the currency decreases resulting inpressure on the USA Economy

and Society

Vicious cycle of Inflation producing events,begins

It becomes either

Hyperinflationor

Stagflation

Government printing

andborrowing money

increaseaggregate demand

and quantity of money,

pushing prices of goods

and services higher

Increased cost of goodsand servicespush workers to

demand higher wages

Demand for higher wagesby workers push the costof goods and services higher

Government,

Encourages businesses

to hire workers

by increasing the

government spending

Increased prices

result in government

increasing borrowing

and

printing of dollars

Businesses charge

more for goods and

services to offset

higher costs

of doing business

Currently we have all of them in play - the Demand-pull inflation, Cost-push inflation andBuilt-in inflation. They are bubbling up and soon, they will be ready to explode, pop up, withunimaginable consequences for the US and World economies.

US government is borrowing and printing money as never before, throwing money ongoods and services they do not need, hoping to stimulate the businessesand reduce the unemployment. Businesses seeing, that the government is willing tospend as much money as they can - charge them as much as they want...

Oil and food prices are rising on higher demand and shortages, because of climate and social -political changes around the world.

For now the wages of most of the private businesses workers are stagnant and

businesses are cutting hours and laying off workers, but the government keeps hiring andindexing the government workers wages according to the inflation rate . And wait and seewhen the hyperinflation starts, the government will mandate the private businesses tokeep up workers wages up, rising them at least as much as the rate of inflation.

If the government can keep printing and borrowing and keeps the government spending up

and also keeps hiring the laid off workers from the private sector...then brace for HYPERINFLATION

If the government cannot keep the spending and aggregate demand up, cannot hirelaid off workers from private sector, because of budget shortages ....

then brace for STAGFLATION

The second scenario seems more probable at the momentTheCynicalEconomist.com

TheCynicalEconomist.com

TheCynicalEconomist.com

TheCynicalEconomist.com