Saturday, May 30, 2009
Paul Krugman on inflation
New York Times: The Big Inflation Scare
Suddenly it seems as if everyone is talking about inflation. Stern opinion pieces warn that hyperinflation is just around the corner. And markets may be heeding these warnings: Interest rates on long-term government bonds are up, with fear of future inflation one possible reason for the interest-rate spike. But does the big inflation scare make any sense? Basically, no — with one caveat I’ll get to later.
Posted by jimj @ 08:27 PM (980 views) Add Comment
7 Comments
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1. ketha said...
'But it’s hard to escape the sense that the current inflation fear-mongering is partly political, coming largely from economists who had no problem with deficits caused by tax cuts but suddenly became fiscal scolds when the government started spending money to rescue the economy. And their goal seems to be to bully the Obama administration into abandoning those rescue efforts.'
i agree with this. the scandal of the way the elites are promoting their corruption still isn't fully understood. hopefully it will.
2. crunchy said...
You can rationalise as much as you want.
You can rant on about deflation.
You can try to convince us that all this extra money sloshing around will just be looked at.
You can dream about cheap food and ice cream.
You don't dare to face the expensive truth.
You know who you are and just like inflation, you can run but you can't hide.
They always get what they want.
3. amjidk said...
a while back, John Herring wrote
“The credit markets are much larger than the stock markets. These markets are driven by traders whose job it is to see beyond the lies and propaganda coming from Washington and Wall Street. You will not have to wait for asset deflation to finally give way to inflation. The bond market will spot it on the horizon and begin discounting bonds and raising long term rates.”
looks like it's already here...
4. crunchy said...
http://www.youtube.com/watch?v=jB9fuIvksLw
Simple yet rare common sense.
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