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Politics : The Obama - Clinton Disaster
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To: Wayners who wrote (91225)3/27/2014 4:53:02 PM
From: DuckTapeSunroof  Read Replies (1) of 103300
 
"That's a snapshot, and by the definition of inflation, it doesn't matter where the money is parked today. Once money is created, that is the definition of inflation. I do not subscribe to Economists today that have warped the definition of inflation into general price levels. Why? Because price levels are easily manipulated. How much money has been produced is a hard fast fact."

I would say 'No, not so much'.

'Asset inflation' is what matters to most folks... the prices of goods that MATTER to their daily lives.

I think you are a bit confused about 'monetary inflation' though, because 'money' can be UN-created just as fast as it is 'created'... one term for that is sterilization, another term is 'mopping up'.

It's not like they are actually PRINTING the money that you and I are talking about.

And, when private BANKS lend money out they are 'creating' money. (So it is NOT just the government that 'creates' money.)

By the exact same token, when banks pull their horns in and STOP making loans (as they have been wont to do in recent years) then they are REDUCING the amount of money that is in the economy.

So, 'How much money has been produced' is not really a 'hard fast fact'.

It is much more a squishy soft 'fact', and subject to rapid change.
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