Inflation will accelerate next decade, economists say (Bloomberg News via Canada’s National Post). The above article informs us that the US Federal Reserve will be unable to prevent inflation as a result of the trillions of “stimulus” the government has “pumped” into the economy. If you have read my previous article, Inflation of What?, you may not be surprised since you know that the excess money and credit in the US economy is in fact, monetary inflation. The Fed will not be able to “ease” the excess from the economy without courting some additional disaster of a recessionary nature. The result will be … Continue reading News That Isn’t
When I read that “Canada’s inflation rate hits a 56-year low” in the August 19 online edition of the Financial Post I was intrigued by this supposedly welcome news. A careful reading of the short news item, which includes quotes from 3 professional economists, reveals that confusion about economic inflation is prevalent among journalists and economists. It is not just the rest of us who don’t understand inflation. In the article, no effort is made to explain inflation in any terms other than the relative changes in the prices of various categories of goods. One of the economists consulted for … Continue reading Inflation of What?
No economy is a machine, despite the poetic renderings of writers or the misguided rhetoric of politicians and their economic advisors. An example of characterizing the Canadian economy as machine appeared in a recent print edition of the Globe & Mail’s Report on Business. The Canadian economy may be pulling out of its steep nosedive, but most businesses still have their seatbelts firmly fastened and oxygen masks at the ready. And they are content, for now, to let government fly the plane. –Brian Milner, August 3, 2009 Mr. Milner’s colorful airline metaphor serves as an illustration of the generally poor understanding most observers have, including many professional … Continue reading “Running” the Economy