Inflation is something that has more than one factor that affects it. When much money has been taken out of the economy, and not re-circulated, there is a relative shortage to go around. People and businesses who have high costs to meet ask more for their services and spend less on frivolous items. It's a compounding problem, prices go up, wages stagnate.
Traditionally as credit tightened, people lost work, then started flipping burgers. Businesses closed and sold their inventories for cheap. As banks wrote off their losses the cycle eventually started over. A shortage of circulating currency may have several different causes, but the result is usually the same.
Hey Lau, I love your analyses! I'm Canadian. Can you recommend someone who does the same analysis, coming from the same viewpoints, for Canadian economics? I will keep following you regarding the US as it affects Canada, but I'd like to know what the money printers in Canada are doing. Thanks!
Hey Dave, appreciate the kind words. Unfortunately, I don’t know anyone off the top of my head. I myself might touch on some Canadian stuff now and then, though. Thanks for being a reader!
Seriously, people, does anyone awake these days think Government is on middle-class America's side? Anyone? It is about MONEY and POWER or POWER and MONEY. Period. CPI doesn't even have groceries in it because they say it is too volatile. Wake-up and smell the coffee - As George Carlin said - "It's a big club and you ain't it in".
You’re, of course, right about the money and power part — but just to be clear, CPI does include groceries. “Food at home” is about 13-15% of it, I think. You’re probably thinking of core CPI, which does leave out food and energy because they’re, ehm, “too volatile.”
The worst part of this is that no one is ever held to account for their misdirection about the intentions and the results. If someone's livelihood were on the line for making errant statements, would they be so cavalier with their predictions? Or would they always be protected from their errant ways?
As Thomas Sowell says. If a business man makes a mistake he or she pays for that mistake. If the gov makes a mistake the citizens pay for the mistake and the bureaucrat gets promoted
Inflation is something that has more than one factor that affects it. When much money has been taken out of the economy, and not re-circulated, there is a relative shortage to go around. People and businesses who have high costs to meet ask more for their services and spend less on frivolous items. It's a compounding problem, prices go up, wages stagnate.
Traditionally as credit tightened, people lost work, then started flipping burgers. Businesses closed and sold their inventories for cheap. As banks wrote off their losses the cycle eventually started over. A shortage of circulating currency may have several different causes, but the result is usually the same.
Hey Lau, I love your analyses! I'm Canadian. Can you recommend someone who does the same analysis, coming from the same viewpoints, for Canadian economics? I will keep following you regarding the US as it affects Canada, but I'd like to know what the money printers in Canada are doing. Thanks!
Hey Dave, appreciate the kind words. Unfortunately, I don’t know anyone off the top of my head. I myself might touch on some Canadian stuff now and then, though. Thanks for being a reader!
Seriously, people, does anyone awake these days think Government is on middle-class America's side? Anyone? It is about MONEY and POWER or POWER and MONEY. Period. CPI doesn't even have groceries in it because they say it is too volatile. Wake-up and smell the coffee - As George Carlin said - "It's a big club and you ain't it in".
You’re, of course, right about the money and power part — but just to be clear, CPI does include groceries. “Food at home” is about 13-15% of it, I think. You’re probably thinking of core CPI, which does leave out food and energy because they’re, ehm, “too volatile.”
The worst part of this is that no one is ever held to account for their misdirection about the intentions and the results. If someone's livelihood were on the line for making errant statements, would they be so cavalier with their predictions? Or would they always be protected from their errant ways?
As Thomas Sowell says. If a business man makes a mistake he or she pays for that mistake. If the gov makes a mistake the citizens pay for the mistake and the bureaucrat gets promoted
Thank you. I forgot he was the one who said it.