Bankers Blow Bubbles
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January 1, 2013 - 8:12pm
A Treatise on Unsound Money: Part 1
Written by Derryl Hermanutz
There are a lot of erroneous statements in this article by Adrian Ash masquerading as 'facts' that 'everybody knows'. If what everybody knows is limited to reciting groundless slogans, then sure, lots of people who confuse popular slogans with objective observation and analysis will agree.
Let's take this one:
"...central banks clearly want to see higher inflation. Because in the Fed's plan - if not in reality, history or anyone else's model since the late 1970s - the idea is that this will boost employment."
High inflation and high employment are not observably linked in economic history? Every credit fueled boom has two effects: it inflates the prices in an asset class like stocks or real estate, and it generates widespread economic prosperity and employment. Does Ash not think 1000s of crews building hou...
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