USA politics and economy

Our federal politics are in serious disarray. The cause is clear.

For the past 20 years the Republican National Committee and their candidates have been losing popularity.  Out of desperation, they have retained significant power only by nefarious extreme action They have taken measures such as: 

• demanding that republican congressmen vote as a block and ousting those who don't; 
• embracing radical right leanings (anti-immigrant, anti-diversity, pro-gun, anti-governmen..) to bring in votes from right wing extremist groups;
• aligning the republican party with the wants of rural states (at the expense of not representing the American majority) in order to gain electoral vote advantage;
• impeding voting by minorities; 
• doing extreme gerrymandering;
• promoting distrust and divisiveness between Americans, demonizing their political opponents, denying fair election results, denying climate change and promoting mis-information about the pandemic.

Of course, in the face of the above, the Democratic National Committee has responded with its own bad actions, although to a lesser degree. In my opinion, if this county is to survive and  prosper, the extreme political influence upon our Congress members by the RNC and the DNC needs to come to an end. 

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Our economy is in a bit of disarray as well.  It is still in recovery from the COVID pandemic, and from the economic misguidance by the last Republican president (specifically his mucking up of international trade agreements, his ruining our relationships with our allies, and his taking away federal government revenues to give tax breaks to corporations to foolishly stimulate an economy at a time when it was already running strong).

Regarding presidential misguidance mucking up the economy - thankfully we are away from that now. Under Democratic leadership (just as was the case from 2008 to 2016) economic disaster has been averted and the economy is regaining its strength. Until we elect another republican president, I expect the economy will thrive.

During the worst of the covid19 pandemic (mid 2020 through  mid 2021) the FED increased our money supply by 40%.  (Most of this was done with the $4.5T added to the FED balance sheet. This was freshly created money that was used to purchase bonds from open markets and which flooded "free" money into the economy.)  This was the key action that kept businesses going while many of us hunkered down in our homes to combat covid19.  It was good the FED did this, because neither Congress nor the Executive branch were going to do enough. 

But this was done at a cost. The 40% increase in money supply has triggered high inflation. 

Given 3 years time with inflation at 9% per year, and given no further increase in money supply, the high inflation problem will go away on its own.  After the 3 years, the value of the dollar will be diminished by 30% but inflation will have dropped to zero.  

I fully expect this is how it will go.  We just have to somehow come to terms with leaving most of the $4.5T excess money supply out there (indefinitely) and taking the devaluation/inflation hit over the next few years.

The politicians will say otherwise. But they will do nothing constructive toward fixing the money-supply problem (they won't even speak of excess money supply as the problem). They will only make empty promises, point fingers at others, and cast blame.