Oh I’ve heard it again, the printing of money is going to cause the worst inflation this country has ever seen. This is explained by some serious sounding person who (along with hundreds of thousands) predicted the housing bubble, recession of 2008. Of cause this person who is predicting this hyper inflation either works or is the boss of this really prestigious firm and sometimes he in the economics department of a real prestigious university.
Ok, let me repeat what I’ve written about so many times before, the money that the Federal Reserve is printing(?) is actually replacing money that the country has burned. Now if you happen to stumble on this blog and you don’t understand what I’m saying tough.
Now my understanding that most inflation is more of a supply and demand phenomenon and that includes the inflation of the Weimar Republic (Sorry the hyper inflation had little to do with the supper printing of money but the strict austerity forced on it by the victorious allies in World War I).
What no one seems to talk about is the pockets of high inflation in places like NYC and San Francisco, plus places that struck it rich in the oil boom areas of the country. No one says gee their are an awful lot of stock that are inflated.( In case you don’t understand I’m trying to explain that their are pockets of inflation that no one seems to put it in their mindset). (There are also places that are in deep recession in the farm belt).
Maybe on another day I’ll try to explain in logical terms on the Nixon, Reagan inflation stagflation.
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