Thursday, April 4, 2013

Steve's barking at fantasy inflation

I've read in more then one place that the FEDs printing electronic money will lead to runaway inflation.
Now I've written it before so I might as well write it again noooo printing of money in itself  does not lead to inflation despite what the majority thinks. Some I the the majority I have only the highest regards for in what they think and what they say, but in the case of inflation money if it's printed or not doesn't lead to inflation. The truth be told most inflation is caused by supply ands demand.
If a person got excess money they can do several things with it, like save,spend or invest.
Now things like drought, producing products that lose money there by making it unprofitable to run a business would cause inflation.  Even products that were there that became unpritable  causes inflation. If one doesn't believe me, just look at some rental housing that had to be abandoned and there was still a need, didn't the price of renting go up?
The electric inferstructure in the North East was devastated isn't the price of electricity going up? Isn't the rise in the price of electricity going to put pressure to raise the price of manufactured goods, and meals in resteraunts?
 Sorry Charley, inflation is primarily caused by lack of goods and services not by the fantasy of printing money.

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