Inflation

News you can use

by Henry Becker 03.31.2011
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Here are a few headlines that grabbed my attention today US Banks versus UK Banks – Same problem different approaches (for now) NYT PIMCO and Buffett shunning bonds – Bloomberg WalMart calling for “serious inflation” – USA Today US Equity Fund Flows dropping – WSJ    

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Lesser of two evils

by Henry Becker 03.06.2011
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In my last post I outlined how printing money causes inflation. The other problem, and it is a big one, is that for every new dollar created the dollars in your pocket become less valuable. The question on the large scale becomes how do we get out of this problem (if at all) and in [...]

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How printing money makes prices rise

by Henry Becker 03.03.2011
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I am not going to bore you with economic theory but rather I will give you a simple example of why adding to the money supply is inflation and the affect is rising prices.  For our simple example we will assume our simple economy has 1,000 units of output and the money supply is $10,000.  [...]

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Govt statistics say no inflation?

by Henry Becker 03.02.2011
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US Government stats show CPI up 1.6% from January 2010 to January 2011.  What?  One only has to read the FT or WSJ daily to see the cost of commodities rising to multi-decade highs.  We all must keep in mind that the true definition of inflation (as it relates to the economy) is the expansion [...]

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