I heard it again yesterday on the boob tube from some analyst on one of those financial network's, we are headed for rapid inflation because of Bernanke and the Fed (the latest Elton John song Benny and the Fed) that because of them buying of bonds is printing money, rapid inflation is sure to follow. Of cause none of these rapid Fed inflationist make a clear explanation as to why I'll be doubling my maintenance fee in my coop or the price of the bus I take will triple and the steak I eat will cost me 12 dollars instead of six because the Fed is trying to put money into the system. That would be to much to ask for an explanation as too exactly how the printing of money is inflationary, after all we civilians print money every day by using our credit cards, by putting money into the bank and having it lent out. Maybe we shouldn't borrow money or lend it out after all it's like printing money and printing money leads to inflation. Maybe the Fed inflationist don't understand the theory of velocity, after all it's only glanced over in economic classes.
Let's take this boring thought farther, let's say that because velocity has slowed the Fed( printing money) is only replacing money that would be printed by velocity and therefore we have a wash.
Of cause that thought would fry the brain the Fed inflationist and we already have too many people with brain disease. Let us listen to those who,in there youth would describe the book they had just read good because they like it, and they liked it because it was good.
Sunday, September 16, 2012
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