Posted by: spickering | March 29, 2007

Stagflation: Doesn’t This Prove It’s All Monetary?

When the economy is slowing, and has been for some time, and yet inflation keeps rising, doesn’t this prove to the “experts” that there is no correlation between growth and inflation? Nothing in historical data shows it, either, as a matter of fact, it shows the opposite. I tell you, its enough to drive you crazy.
Jude Wanniski said that the establishment preferred a floating dollar because they were able to take advantage of it, whereas ordinary folk were not. Maybe so.
With $660 gold, I would say we are going to have a major inflation rip through the system as contracts unwind and new ones are made.
I wonder if this partially caused the sub prime mess, as the dollars they were getting paid back were worth less than the ones that they lent. Sad


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