Thursday, Dec 27, 2007
Printing too mch money too quickly can lead to hyperinflation
Daily KOS: Credit Crunch vs. Central Banks - You Lose
The credit crunch that started in August is threatening to bring the economies of the entire 1st world to a grinding halt.
To combat that the central banks of America and Europe are pumping cheap money into the markets at an unprecedented rate. These actions are not without consequences.
Posted by lvmreader @ 08:42 PM (327 views) Add Comment
2 Comments
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1. alan said...
At the same time as this is happening, the pound is dropping against the Euro.
We will need to work more hours to get drunk on Belgian beer or French wine my friends, inflation will go up rapidly in 2008. If Darling prods the MPC to cut rates, then prices will just inflate faster.
RPI to reach 6% by April. (CPI could always go down if the government fix it).
2. Saintjay said...
That's one of the most cohesive articles I've read on this whole sorry mess. And now it looks even scarier. Deep do-do approaches for most of us I would think.