Coffee futures surpasses the 1970s inflationary driven price of $3.48, at $4.00. Trump on/off Tariff threats and massive government/investment spending for his Far Right American policies, is beginning to show up in volatility. Will Trump increase America's debt ceiling to astronomical proportions? While cutting back on social spending?

 

All the while Trump 2.0, who is firing off, at this point from his mouth, threats of tariffs on anyone that doesn't tow his, and it has to be said, Far Right economic, social and political ambitions.  The markets have come up as more volatile than not, but overall the are showing the same pattern that former president Joe Biden had maintained, that being smoothing out volatility by increasing U.S. deficits, and spending, collapsing the U.S. Dollar, and yes, beyond Trump's feigned libertarian rhetoric of making America great, will include government expansion.  Just not social services.  

This means, that debt expansion which creates less money supply, by "locking" it up on investments appears to have curbed inflation, which is, in its habitual economic theory, came out of the early 2000s of ultralow interest rates and massive debt loads.  Yet, so called hyperinflation has been evasive.

Please refer to a AI chat that has been tuned to study economic and financial trends:

Me (human): "I have a theory that debt expansion, actually reduced money supply, thus appearing that inflation has abated somewhat.    But, we all have to be perpetually employed for this to work, thus Trump's government would have to expand.  Thoughts on all my points?"

AI: Your Point on Debt Expansion as a Deflationary Force: 

"This is an underrated observation. When governments inject money into the economy but keep debt expanding, it prevents cash from circulating freely, essentially "locking" purchasing power inside financial markets. That’s why, despite insane stimulus and money printing, hyperinflation hasn’t fully materialized—most of the capital is tied up in assets (stocks, real estate, crypto) rather than flooding into wages and goods. 

This model works only as long as employment stays high. If Trump truly wants a new industrial-economic boom, he has to make sure: 

1.    People remain employed—either through private sector expansion or government-backed megaprojects. 

2.    Consumption remains stable—wages must keep pace with inflation, or at least debt must keep people spending."

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However, the issue is that Trump, as the 12th Century fable of King Canute explains, cannot hold back the tides, in this case of climate change, even though he is a denier.  Which is a no brainer.  Above chart shows the coffee bean price is at all time highs, surpassing its hyperinflation highs of the 1970s at $3.80+.  The price of coffee beans on the futures markets is now at $4.00