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>>You can not have inflation with stagnant or falling wages and stagnant or falling housing house prices...<<

I sort of agree and disagree. That is, if nobody has money, nobody is buying anything. However, even if the entire population loses their jobs, the money did not go away. It is somewhere and in someone’s hands and if there is a lot of it, prices will go up for that reason.

Except, to demonstrate through extremes, if the entire population is unemployed, but 10 people have all the money, it means those ten people will eat really nice steaks, but there will be very low demand for steaks, making prices very reasonable. It is as if there is a lot of money, but controlled by few people that simply don’t need that much “basic stuff”, while everyone else starves. Demand would be low, as would prices, even though there would be a lot of money. But the money would be rotting away, unused.

I oversimplify for one reason: generate thoughts and ideas from people other than myself. Some of you can tell me where this is all wrong, partly right, and in either case, what it may mean for all of us.

You can not have inflation with stagnant or falling wages and stagnant or falling housing house prices.

That's my take, despite the upward spike in money creation. There is so much debt and unbacked "securities" (a misnomer if there ever was one) that no matter how much Bernake & Crew create out of thin air, the Black Hole of debt will suck it up.

And, to put things into perspective on Laffer's credibility, check out the YouTube segment where Laffer was ridiculing Peter Schiff when he was sounding the alarm about the real estate bubble. (He bet Schiff a penny if Schiff was right (53 secs into the video) and when that was brought to his attention on a later show where he was hawking his latest book, he lamely replied, "That's why I only bet a penny." His advice is worth the same.

If you haven't watched it in its entirety, check it out to see how wrong "experts" can be - especially the gal who disputed Schiff and said, "Excuse, me I'm from Detroit. Been in an auto plant lately?" Hilarious in an ironic way.