Comments on: Where Is Dr. Paul’s Inflation?

By: Michael Suede

Michael Suede — Thu, 01 Mar 2012 15:45:00 +0000

When the central bank artificially lowers rates, it will produce inflation. Prices are not stable. They rise over time. You are wrong in your assessment. If you were right, then there would be no inflation.

By: Eric

Eric — Thu, 01 Mar 2012 07:30:00 +0000

The housing boom was a bubble, not inflation, although the two are related.

When a central bank creates enormous amounts of money and channels it into a very few homogenous pockets, they are going to be looking at places to invest the money and much of it will largely end up in the same kinds of investments. This will create a bubble, not inflation.

The result will be inflation if the enormous amounts of money created is spread around more haphazardly and isn’t concentrated in a chosen few.

The money created by the Federal Reserve in their effort to make the crash of the Dot Com Bubble less painful for their wealthy and influential friends largely ended up going to housing securities. The natural result was a housing bubble, not a general inflation.

By: Rom

Rom — Tue, 28 Feb 2012 13:25:00 +0000

The pension funds have to park their investments somewhere until they are in balance, that is until the number of dead pensions more or less balance the new recruits joining the fund.
Suddenly the fund need very few government bonds except to replace those that have expired at therefore paid back in cash.
The governments have spent the savings of the people reserved for their old age, well knowing that they could never keep their promises to refund the pension funds.

By: Jkduhf

Jkduhf — Sat, 18 Feb 2012 05:06:00 +0000

“Right now, the banks are sitting on it all because they are essentially being paid not to lend it out.”

Absolutely true

If you tried borrow money lately you will know, only thing missing from required documentation is a sperm sample.