This morning I received an email news letter from the Ludwig von Mises Institute linking to an article by Frank Shostak that describes his view that the Federal Reserve's pumping of cash into the economy is inflationary. His position is that the current decreases in commercial credit do not effect the overall money supply. On October 5, Elliot Wave International's Bill Fox wrote that the US in neither in a disinflationary nor an inflationary economy, but in a deflationary economy. For those that are unaccustomed to economic terminology, or may have forgotten, Inflation is an overall increase in the total amount of money in the economy, disinflation occurs when the rate of inflation is decreased, and deflation occurs when the supply of money decreases. The effect of inflation is rising prices, while the effect of deflation is falling prices. reflation is an attempt by government to return the money supply to its previous levels once deflation has set in. Normally, the folks a...
A compendium of thoughts, ramblings and rants from a 50 year old father of 11 children.