KRUGMAN'S SIMPLISTIC VIEW OF THE US ECONOMY AND THE FED POLICY...CAN BE CHARTED ON A GRAPH WITH TWO AXIS...
BUT THAT IS THE BIG FALLACY OF MOST ECONOMIC THEORIES...
THEY NEVER CONSIDER THE ECONOMY AS BEING THREE OR FOUR DIMENSIONAL...
AND X AND Y AXIS IS ALL THAT THE ECONOMISTS CARE ABOUT... WHY...? WELL MAYBE ITS EASIER TO PRINT ON A TEXTBOOK PAGE...? YA THINK...
TO KRUGMAN...HIGHER GOLD AND OIL...IS STRICTLY CAUSED BY A "REVIVAL" IN "EMERGING ECONOMIES"....
IT HAS NOTHING TO DO WITH THE FED MASSIVELY DEBASING THE US DOLLAR TO "BRING BACK THE BUBBLES"...ON WHICH AMERICANS HAVE BECOME TOTALLY DEPENDENT...
KRUGMAN'S PROBLEM IS THAT HE IS LOOKING AT REAL ECONOMY FACTORS, LIKE DEMAND, AS KEY TO INFLATION...
WHEN ITS REALLY THE MONEY SUPPLY .... AND THE HERMETICALLY SEALED OFF FINANCIAL MARKETS ON WALL STREET THAT ARE SETTING COMMODITY PRICES...BASED ON THE EXCESSIVE MONEY SUPPLY
YES. MAIN STREET IS DEPRESSED...BUT MAIN STREET WAS DEPRESSED IN THE SUMMER OF 2008 JUST BEFORE THE BIG BANKING COLLAPSE...THAT WAS JUST AS OIL WENT TO $150...
AND $4 GAS KILLED OFF THE ECONOMY...
AND THE REST IS HISTORY...
SO KRUGMAN LIGHTS YET ANOTHER CANDLE ON THE ALTAR OF SAINT MAYNARD...
BUT GOLD AND OIL WILL CONTINUE TO RISE...STRICTLY BECAUSE OF FED POLICY OF MONEY DEBASEMENT...AND NOT BECAUSE OF THE "CONSUMER" IN CHINA AND INDIA...
