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The massive spending of the federal government, far beyond the revenue it collects, is the root cause of inflation. The Federal Reserve aids and abets the government by purchasing securities, a process tantamount to printing money. As a result, the value of the dollar declines, or the nominal prices of goods and services purchased for dollars increase, aka, inflation. Corporations, facing higher input costs, have no choice but to hike final prices. As we have seen, corporate profit margins have not expanded during this period of reckless fiscal and monetary policy.