william the wie
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- Nov 18, 2009
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Totally agree with the rest of your points. The deflation/inflation argument is based on a derivative of a real wage fluctuation study done by Philips and hence the Philips' curve. The question is whether real wage increases are a cause or effect of increasing velocity and multiplier leading to price inflation. The idea that some third factor causes both effects was rejected and that appears to have been a mistake since stagflations are impossible in the Philips universe of discourse.Or worse.
Since 1929, the American Economic Boogyman has been DEflation, not inflation.
Obamanomics (Printing Trillion$ and giving it away) will set the tone for Inflation, the likes of which Americans have never experienced.
Well deflation actually is more dangerous than inflation.
Actually that is an unproven assumption. America's greatest productivity gains happened in the deflationary 1800s as measured by life expectancy gains which is much harder to gimmick than conventional economic data.
Inflation is a systemic element of our currency system.
If you don't like inflation kill the fed, if you don't, or won't kill the fed then blaming Obama, or anybody else, is counterproductive.
If you really mean it when you say you don't want an inflationary system then don't cloud the pool with useless partisan distractions. Keep people focused on the real cause in the hopes that they will actually do something, other than just whining.