Joe. <Has there ever been a debt money economy that has ever experienced run away inflation?>
Not that I know of.
My wag has long been that the regime can continue to create mountains of money and credit. But, ALA monetary velocity continues in the tank? That liquidity is trapped in:
1. In the banks, as much because there's little demand for credit in a weak economy as because the banks are reluctant to lend.
2. In the markets via FED Primary Dealer recycling and "ghost accounts" located abroad, but funded by the FED and allied CBs via swaps feeding markets.
We're watching a giant cat chase it's tail, year after year. Very little of the liquidity will ever get to the real economy not matter how many years the public is told to wait.
Again, this is a multi-decade secular deflationary process driven, in large part, by incredible pig headed adherence to Keynsian pump priming policies that can't possibly work in such a hi debt environment. The deflationary weight of so much debt has killed the reflationary pump.
The supposed best and brightest Ivy League graduates have dominated key government policy positions for decades. Often they go back and forth from gov appointments to teaching, or become college presidents. This intellectual incest has created the negative feedback policy loop we continue to suffer under.
That, even in recent years, scions of Harvard, MIT, and Yale, et. al. continue to advocate a big gov Keynsianism which no longer works tells me these universities have been teaching ideology instead of critical thinking. The result has been two generations of minds closed to the value of "classical economics" as seen in the Austrian School.
At long last, we're finally seeing these essentially big government Ivy League schools isolated and criticized as the one party lapdogs of big gov folly.
zerohedge.com
This is a start, but we have a long, long, road to travel in the culture war that will be fought to restore real academic freedom and ideological balance to our one party universities.
Iso |
