Inflating

Thursday, May 12th, 2011
"Bernanke continues to dismiss inflation as a big U.S. economic concern, and the Fed decided last week to keep interest rates between 0.00% and 0.25% "for an extended period." But U.S.
Wednesday, May 11th, 2011
"President Roosevelt's second offensive against the depression has been launched in the form of an amendment to the farm bill. This amendment provides a manner in which the credit of the country will be expanded. Expansion of credit is expected to lead to increased business activity.
Wednesday, May 11th, 2011
"A return to the gold standard by the United States within the next five years now seems likely, because that move would help the nation solve a variety of economic, fiscal, and monetary ills, Steve Forbes predicted during an exclusive interview this week with HUMAN EVENTS.
Tuesday, May 10th, 2011
It took 200 years to build and perfect the classic gold standard system; then it was destroyed in about seven weeks when the Guns of August 1914 thundered across Europe; and now I am allotted seven minutes to resurrect it. Fortunately, Churchill’s defense of democracy also applies to the daunting task at hand: To wit, the classic gold standard is the worst possible monetary system – except for all of the alternative inflation-generating, savings-destroying, debt-breeding, bubble-emitting and boom and bust-prone systems which have been tried in the 100 years since its demise. Hence, we offer six present day monetary vices which are curable by gold...
Tuesday, May 10th, 2011
We sound money types lament the disappearance of “good” money like gold and silver coins from day-to-day business. There is something special about these ancient and honorable monies.
Monday, May 9th, 2011
"European Central Bank President Jean- Claude Trichet said the world’s central bankers are united in fighting inflation fueled by surging commodity prices and fast- growing emerging economies.
Thursday, May 5th, 2011
"F.A. Hayek said that his biggest regret in a lifetime of writing was that he never wrote a book-length refutation of Keynesian economics. He seriously doubted that Keynesian style planning would ever captivate governments, so he focused on different things.
Wednesday, May 4th, 2011
Over on the Coordination Problem blog, a number of scholars in the field of monetary theory are having an interesting discussion on the topic of Hayek and deflationary spirals. I am providing the link.
Wednesday, May 4th, 2011
"First, the question is not whether the Federal Reserve should raise its target inflation rate above 2% per year. The question is whether the Federal Reserve should raise its target inflation rate to 2% per year.
Wednesday, May 4th, 2011
"The side affect of all of the money supply and low interest rates is that commodity prices continue to rise, which is hitting the middle class rather hard. And with consumers making up 70% of the economy, this is a real drag on real economic growth.
Tuesday, May 3rd, 2011
Here is an interesting article about the effect of inflation on your pain at the pump.
Tuesday, May 3rd, 2011
"The side affect of all of the money supply and low interest rates is that commodity prices continue to rise, which is hitting the middle class rather hard. And with consumers making up 70% of the economy, this is a real drag on real economic growth.
Monday, May 2nd, 2011
"It might help getting our minds around what is so wrong in America today by thinking about the local police force. It’s not hard to understand that the job of the police is to protect lives and property. Suppose we decided to broaden their mandate.
Thursday, April 28th, 2011
The idea of money neutrality is a cornerstone in formal monetary theory. It is not free, however, of some controversy. If there are changes in money supply, why will the economy converge to the same equilibrium and not to a different one?
Thursday, April 28th, 2011
"Depending on what you read, your political leanings, and philosophical beliefs, some scenarios like these could be on your mind. But reality is seldom that outrageous, so here is what I think will happen. First of all, prices are going up.
Wednesday, April 27th, 2011
"When Federal Reserve Chairman Ben Bernanke makes his debut press conference Wednesday, his every word will be parsed for signs of where he hopes to take U.S. monetary policy.
Tuesday, April 26th, 2011

To explain the role of money, we must go even further back, and ask: why do men exchange at all? Exchange is the prime basis of our economic life. Without exchanges, there would be no real economy and, practically, no society.

Monday, April 25th, 2011
"Senior Fed officials believe they will be able to push up the fed-funds rate, the traditional benchmark for short-term interest rates, but not by the usual means of simply selling relatively small amounts of Treasury securities to soak up bank reserves.
Monday, April 25th, 2011
Rejecting any serious cuts to government spending, President Obama stated recently, "Nothing is easier than solving a problem on the backs of people who are poor, for people who are powerless and don't have lobbyists or don't have clout."

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