What ever happened to the old belief that inflation is too much money chasing to few goods.
Now if logic serves me right if there is too few goods prices will go up. So if there are droughts and floods and through in competition from other countries there should be food inflation. Monetary policy would have nothing to do with it.
This is true with any commodity, if there is inability to produce to the demand then the price will go up. Ya Think. Even If the commodity is a manufactured good. Ya Know. (Manufactured commodity, what the?)
Any how getting on with what I'm trying to express in this blog, why does some many people who should know better forget that there are two parts to the inflation equation? Are they two lazy to actually think?
Any how why are we so worried about the deficit when we can always print some more money?
If you believe that printing money is inflationary, you don't don't know d*** about inflation.
*I understand that this particular blog maybe very confusing to a lot of readers.
Think this way if we don't spend money on infrastructure and stop subsidizing our farmers you will see wheelbarrow inflation that will be impossible to get out of.
** You'll need a wheelbarrow or it's electronic equivalent to buy a loaf of bread.
*** If you think that stagflation in the past was bad, you ain't seen nothing yet.
**** 50% unemployment anyone?
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