Mogambo in the Asia Times continues to call a spade a spade, and speak inconvenient truth abnut our economic trends.
Read the whole column to appreciate its full flavor, but this dollop will give you the general idea at least:
I motion for Peter Schiff of Euro Pacific Capital to take the microphone and talk some sense into these idiots in the audience. I shout out, “Okay, listen up, you morons! Mr Schiff here is going to tell you about inflation!”
I step aside, and Mr Schiff says, “Inflation has only one cause and that is the Federal Reserve itself. In the United States, the supply of money and credit is regulated by the Fed. Since inflation is by definition an increase in the supply of money and credit, only the Fed can create it.”
I look out over the audience to see if anything is sinking into their heads, but all I see is people glaring at me with that familiar look of hatred in their eyes. So I mischievously ask, “What would happen if the Fed didn’t create more money and credit?”
He easily replies, “If the money supply were held constant, increases in some prices would be offset by decreases in others. The result would be no overall inflation.”
No inflation! To make sure that nobody misses this important point, I grab the microphone right out of his hand and I scream, “No inflation in prices! No inflation in prices! It’s a paradise! No inflation!”
Mr Schiff, taken aback by my sudden outburst, gingerly takes the microphone back and says that, “In fact, without government created expansions of the money supply, the natural tendency of prices would be to decline as technology allowed for more efficient production of goods and services.” (emphases added)
What a concept!