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Any chance you coud repost the text? I can't get their site to come up; it bombards me with so many cookies and popup windows that my browser crashes. The only time I've seen anything like it was some porno site I hit (while trying to find an innocuous site reviewing chocolates, believe it or not) which forced me to unplug my network connection to escape.
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The core rate of the consumer price index in Canada, which excludes some food and energy items, rose 2.2 percent in April from a year ago. This prompted the Canadians to increase interest rates, for the second time this year, to head off this inflation. Whoa! Where did this philosophy of responsibility come from?
- The Europeans are considering raising their interest rates, for the same reason; namely, keeping inflation from getting any worse.
- The Australians, the leaders in the race to expand the money supply, have now had to raise interest rates twice in a month to keep the resulting inflation under control. The official line is that they are raising rates to cool a red-hot economy.
- But here in the USA, we have price inflation that is 50% higher than Canada, higher than Australia, high*er than the Europeans, yet we are not raising interest rates. Instead, Greenspan is keeping them at 40-year lows. Perhaps so that he can get some price-inflation started here, hoping that it will make the prices of things, by which I mean stocks and houses particularly, go up in price. Everybody's making money again! Whee!
- Except the poor, of course, who are the ones who ultimately pay the full cost of price-inflation. But better than a price-deflation, eh? In a deflation, it is the rich who pay the full cost by virtue of their assets falling in value. So get them inflation-starters roaring, dude! God forbid there should come a time when the rich were made worse off! What's the point of lobbying and electing compliant legislators if only to lose wealth? So, inflation for everybody!
- Price-inflation is how the excessive credit-created money is finally absorbed into an economy. Little by little, things cost more and more money, as the amount of money reaches, for want of a better word, the hypothesized "equilibrium" with the supply and demand for goods and services. When the happy day arrives price inflation falls to zero; the supply and demand for dollars will again match the supply and demand for goods and services in the new societal scale of values. Remember that in a price-inflation, not only does the price of each thing go up, but the RELATIVE values of all things to all other things will have changed, too. Watermelons could be more expensive than diamonds.
- If the Fed keeps creating more money, then the loop starts all over again. Which just makes it temporarily seem better, like a mother's kiss on a skinned knee. But with the QED reality of making it much worse down the road, as the germs from the mother's lips cause a huge, gangrenous, green and purple, pus-filled infection on that skinned knee. A normal mother sure wouldn't kiss that disgusting, nauseating knee again, but Alan Greenspan puckers up and plants another big ol' sloppy one right on it, every time.