new_trader
Legendary member
- Messages
- 6,770
- Likes
- 1,656
You don't know how funny you are. You talk about eroding consumer purchasing power disposable income etc yet you talk about raising rates to tackle inflation.
True but in each case you need to consider time lags t-1, t+1 you know the stuff don't you.
Let's have some clarity from you for once instead of silly links.
Atilla, you have selective amnesia.
In summary, I have said repeatedly that the inlationist policy of keeping interest rates low and expanding the money supply via a printing press only benefits a profligate Government. All else is a consequence of this premise.
The insidious monetary process of political manipulation of the value of national currencies destabilizes the peace of the social order; it increases strife among citizens; it causes intense divisions and political partisanships. But the ensuing bubbles of inflation and the busts of deflation can be coped with by nimble speculators, even as they impoverish the middle class and all those on fixed incomes. Throughout history currency wars lead to irreconcilable class rivalries at home, often born of undervalued currencies, competitive devaluations and national tariffs, joined to trade-blocking quotas.
If we truly wish to rule out systemic financial disorder and currency wars, and their consequences then we need a return to a sound money policy.