Speaking of inflation, Theodore Dalrymple examines @ City Journal the moral, rather than the mere economic, ramifications of currency deflation. We live in a "borrow" culture instead of a "save" culture because of inflation by design. "But asset inflation--ultimately, the debasement of the currency--as the principal source of wealth corrodes the character of people," he writes. "It not only undermines the traditional bourgeois virtues but makes them ridiculous and even reverses them. Prudence becomes imprudence, thrift becomes improvidence, sobriety becomes mean-spiritedness, modesty becomes lack of ambition, self-control becomes betrayal of the inner self, patience becomes lack of foresight, steadiness becomes inflexibility: all that was wisdom becomes foolishness. And circumstances force almost everyone to join in the dance."
Excellent.
Of course, this is summed up nicely in Proverbs 20:10 - "Unequal weights and unequal measures are both alike an abomination to the Lord."
One short lived aspect of the economic downturn that is positive is people's propensity to save. However, our economy is not built on such moral foundations. We seem more inclined to speculate and encourage spending what one doesn't have. Of course the long term consequences of instant gratification is an "old foggy" notion. Of course that is why our youth many times are so arrogant and lack discipline. Hard to expect different when your government is so much that way.
Dan-I have a Masters degree in Economics and if I am not mistaken, I don't believe their is 10 trillion dollars of currency(M1 supply) in circulation at any time in the United States. That is the budget deficiet that most economists project at the end of year one of the Obama administration.
If you monitor the daily supply of M1, the increase resembles a 90 degree curve. This equals inflation. I am sure " the brightest of minds" like Dr.Paul Krugman would disagree.
Then again, the only private enterprise Krugman,has had the courage to engage himself (i.e.the New York Times), then one will get a cloear understanding that it doesn't take the strongest of minds to earn the label, "genius" or " PhD". Krugman and his merry band of 60's era losers have made the NYT's no more credible than some supermarket tabloid.
Not only is Krugman the equivalent of a marble, when it comes to a sharp tool, he is also a coward. That was embarrassing to display his total lack of manhood, when he debated Bill O'Reilly on the late Tim Russert's show. I thought that poor little girly man was going to start crying.
On my current assignment, I work with a large group of folks from the sub-Asian peninsula.
They are serious, hard working, knowledgeable people who appear by all standards to be smart with their money.
What I've seen demonstrated is a maturity and discipline that many of us here in the United States have lost. Or, as it turns out, maybe never had.
Sometimes, I think growing up and living in the land of plenty can be cause for loose and sloppy habits. Particularly with regard to finances.
I mentioned here a while ago that I watched Krugman interviewed on Lou Dobbs and the guy, seriously, seemed like a dope. Dobbs was all over him and he ain't no genius.
Hello. My name is Chris. I'm from USA. I'm new to this forum, i was hoping you could maybe teach me some stuff.
This is me-> http://lmageshack.us/img/chrisP.jpg - Just so you know who i am! feel free to post your own photos. Allways best to know who you talk to!
Inflation is the last thing we have to worry about. And, it matters not how much money Bernanke has in his possession--if Banks and the Consumer are not willing to drink, the supply of money is akin to burying it in the back yard. To borrow from Mike Shedlock, "No matter how many pints of whiskey Bernanke sets in front of someone passed out on the floor, liquor sales will not rise." Deflation is what led FDR to devalue the dollar because it was too strong. That is the only remedy to save the Keynesian system. In the meantime, I'm picking up a little gold here and there....:)
