The View From 1776

Understanding The Nature of Inflation

Inflation is a monetary phenomenon.  Too few people understand its true nature and its devastating impact on their lifetimes.

Posted by .(JavaScript must be enabled to view this email address) on 12/17 at 04:00 AM
  1. inflation is going intolerable because of high utilization of things and low unemployement!!!
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    Posted by .(JavaScript must be enabled to view this email address)  on  12/17  at  07:44 AM
  2. The Austrians have been crying wolf for the last three years, predicting that certain and horrendous galloping inflation was just around the corner, due to the actions of the fed and the Obama administration. Well, what has happened in the real world? Inflation continues to to be almost non-existent.

    When will this group admit that their theories are just plain wrong - or as Dick Nixon used to say, "Inoperative"?
    Posted by .(JavaScript must be enabled to view this email address)  on  12/17  at  04:33 PM
  3. Jay-- You claim that with Obamanomics, "Inflation continues to to be almost non-existent." Just wait. Once people get over the shock of having lost trillions of dollars in savings and their home values, inflation will be back--and it could be huge!

    A useful way to look at inflation is to recognize that it is not caused by rising costs and prices, but by the decline in the value of the currency. A decline caused by the government's excessive stimulus spending financed by borrowing and the printing pf paper money.
    Posted by bill greene  on  12/17  at  07:33 PM
  4. Bill,

    I will be patient.

    I do, however, think your distinction between "rising prices" and a "decline in the value of the currency" is rather foggy.

    If you go to the store and buy a loaf of bread today for $2.00, and you go back a year from now, and the price of that loaf is still $2.00, there has been no inflation, even if the Fed has committed several round of qualitative easing and the money supply has increased.
    Posted by .(JavaScript must be enabled to view this email address)  on  12/18  at  06:34 PM
  5. That's a big "if," Jay. In fact the price of bread has continually risen, even though mechanization has lowered the cost of production. The reason we pay higher prices is because of the loss in value of our currency. And that has been caused by the Fed's "qualitative easing" and other methods of printing greenbacks against no reserve.

    This is an important distinction because the free market has through efficiencies constantly lowered the cost of most everything--the rise in prices is because government planners have debased the currency
    Posted by bill greene  on  12/18  at  09:47 PM
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    Posted by uggbootsuk  on  12/23  at  02:51 AM
  7. Hike in goods ,commodities and fall in consumption is leading towards Inflation.
    Posted by VPN  on  12/23  at  03:16 AM
  8. Inflation greatly affects power of dollar and its depreciation.
    Posted by gold bullion  on  12/23  at  08:54 AM
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