Friday, Feb 20, 2015

Someone's been reading this site again

Breitbart: THE INFLATION LIE - HOW IT WORKS AND HOW YOU'VE BEEN HOODWINKED

37 per cent of newly created money has gone into financial markets and 40 per cent into residential and commercial property.
But, guess what? Financial markets and house prices are not included in CPI - so the effects of all that money creation is simply ignored, and the pockets of the few that operate in these sectors are lined.
With stock, bond and London property prices all at record highs, for the Bank of England to be 'warning' about deflation is disingenuous.

Posted by frizzers @ 09:34 AM (7869 views)
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6 Comments

1. cornishman said...

But the Japanese money supply is much higher now than it was in 1989 - and land prices are lower.

http://www.tradingeconomics.com/japan/money-supply-m1
- you can change the date range on the graph.

http://housingjapan.com/2011/11/10/a-history-of-tokyo-real-estate-prices/

So where has all that money gone?

Sunday, February 22, 2015 07:02PM Report Comment
 

2. bidin'matime said...

Very interesting graphs - so, Dominic Frisby - where has the money gone...?

Sunday, February 22, 2015 10:22PM Report Comment
 

3. reticent said...

I have no idea but I would imagine their zombie banking system and world-beating public sector debt will have mopped quite a lot of it up.

Sunday, February 22, 2015 10:28PM Report Comment
 

4. cyril said...

Interesting question. Japan's GDP per capita is roughly the same as the UK, but debt to GDP ratio is about 2.5 times the UK's so that must explain some of it as reticent says. Also in the provate sector the Brits have a tendency to borrow as much as possible and spend it on houses but the Japanese are better savers - so that would also explain some of the house price inflation in the UK.

Monday, February 23, 2015 02:15PM Report Comment
 

5. hpwatcher said...

But the Japanese are better savers - so that would also explain some of the house price inflation in the UK.

Did Japan has a FLS?

Monday, February 23, 2015 03:19PM Report Comment
 

6. Underscored said...

"So where has all that money gone?"

Huge, enormous, gigantic gov-bond bubble called the widowmaker, that is visible from space?

Monday, February 23, 2015 05:02PM Report Comment
 

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