Economist Thomas Sowell said this about inflation, “It is a way to take people's wealth from them without having to openly raise taxes. Inflation is the most universal tax of all.” As inflation creeps up, people are understandably concerned about how it will affect their budgets and investments. Rob talks about that first with our own economist, Jerry Bowyer. MoneyWise contributor Jerry Bowyer is the financial editor at Townhall.com, a frequent guest on the Fox Business Channel and author of The Maker Versus the Takers: What Jesus Really Said About Social Justice and Economics. MoneyWise Live recently received an email from listener Kurt in Colorado who wrote: <blockquote>"I would enjoy hearing a discussion on MoneyWise about how the Federal Reserve "prints money" that it pours into the economy and whether this leads to inflation. Related to that, won't those massive trillion dollar spending bills passed by Congress cause inflation? And if so, are there good investments that protect against inflation? I have heard that commodities and real estate tend to increase in value during inflation."</blockquote><ul><li>The Bureau of Engraving and Printing actually prints money. So how does the Fed increase the money supply?</li><li>How would you describe the Fed’s policy of expanding the money supply since the onset of the pandemic?</li><li>When the Fed increases the supply of money, does that automatically cause inflation more dollars chasing goods, so prices rise?</li><li>Regarding the trillion dollar spending bills that Congress has been passing since the pandemic, greatly increasing the national debt, how significant is this deficit spending in a historical sense?</li><li>How does the rising national debt affect Fed policy?</li><li>How will a rising national debt affect inflation?</li><li>With the Fed increasing the money supply, we have folks shouting that “the sky is falling.” On the other hand, we have at least one lawmaker on Capitol Hill saying that the government can print as much money as it wants without any consequences. Is the truth somewhere in the middle?</li><li>How should this affect our personal finances and investments? </li></ul>Next, Rob answers these questions at 800-525-7000 or via email at Questions@MoneyWiseLive.org:<ul><li>If you've been told you need to make a minimum donation in order to deduct your charitable donations?</li><li>What is better to use, a will or a trust?</li><li>What is the COVID coin shortage and why is it happening?</li><li>If you currently have 2 emergency-care children at your home, should you claim this on your taxes?</li><li>If you're about to review your will, are there some basic tips on will vs. trust, choice of power of attorney, and Per stirpes?</li><li>If you think you're only going to be in your home for about 5 years and currently have a 4.5% mortgage, should you consider refinancing?</li><li>If you're maxing out your current 401(k) at work, can you also contribute to a Roth?</li><li>If you currently run a one-man-business, how can you determine when you should hire your first employee?</li></ul>&lt;&lt;&lt; MoneyWise Market Update with Bob Doll &gt;&gt;&gt;<ul><li>Talk about the growth rates you're seeing in the US and abroad and what it might mean for the equity markets.</li><li>Is it too early to determine what affect the extension of the pandemic can have on the economy?</li><li>Do you think inflation is leveling off?</li><li>Is the hype about the debt ceiling much ado about nothing or is there something there?</li></ul>Be sure to check out the rest of MoneyWise.org to connect with a MoneyWise Coach or access our books and our many free helpful resources. You can also find us on Facebook (MoneyWise Media) and join the conversation. Thanks for your prayerful and financial support that helps keep MoneyWise on the air. And if you'd like to help, just click the Donate tab at the top of the page.

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As inflation creeps up, people are understandably concerned about how it will affect their budgets and investments.  Rob talks about that first with our own economist, Jerry Bowyer.

Money Presses and Inflation with Jerry Bowyer

null | Sep 13, 2021

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