Tuesday, March 7, 2006

MORE BAD REASONING...

In the title link the writer asks: "Is the economy expanding enough to spur inflation..."

But does the economy have to be "expanding" to spur inflation? NO!

Inflation is a MONETARY PHENOMENON...The FED has to PRINT MONEY TO SPUR INFLATION...and the FED has been doing that for decades! eg The Bubbles.

The problem is that expansion based on monetary policy is the "wrong kind" of expansion...I'd gladly take China's kind of expansion any day...based on trade and commerce external to the economy.

Are the media "just lying" to the public about what's really happening... Or do they really not know how things work... Or do they have their marching orders from the elites about "not scaring" the public "inappropriately." So the looting can continue...