07-26-2016, 03:07 AM
(07-26-2016, 02:51 AM)Kinser79 Wrote: Indeed. I think this stems from a fundamental economic illiteracy caused by the ideology that inflation is merely rising prices and not that inflation is increases of the supply of money relative to the supply of goods and services.
In economics the definition of inflation has always been an increase in the money supply. Consumer price increases are only one of many possible outcomes. In the twenties there was massive inflation but it did not appear in the CPI and so economists of the time thought everything was just fine. Ironically, only Mises realized that there was going to be a bust part of the cycle. Curiously, a very prominent economist by the name of Irving Fisher managed to go broke along with everybody else because he thought the economy had reached a new era of permanent prosperity.
A word to the wise, when publications start talking about a new era of prosperity then get the hell out of the market and into some tangible assets. That little meme always marks the end of the boom cycle.
Democracy is the theory that the common people know what they want, and deserve to get it good and hard. -- H.L. Mencken
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises