Apparently, the Harvard Law grad in the White House agrees.
Posted on 05/21/2009 11:55:31 AM PDT by reprobate
FORT LEE, N.J., May 21, 2009 /PRNewswire-USNewswire via COMTEX/ -- The National Inflation Association today released the following statement to its http://inflation.us members: "Harvard professors Gregory Mankiw and Kenneth Rogoff came out this week and said that more inflation is the key to speeding up recovery of the U.S. economy.
Gregory Mankiw said he believes the Federal Reserve should work to create negative interest rates and Kenneth Rogoff advocated having a 6% rate of inflation.
It is our belief that any inflation is too much. Inflation does not create wealth; inflation destroys wealth. It is because of the Keynesian economic theories being taught by professors like Gregory Mankiw and Kenneth Rogoff that our country is in the economic crisis it is today.
Keynesian economists believe that government spending can stimulate an economy and artificially low interest rates are the key to getting an economy out of recession. The truth is, government spending and artificially low interest rates got us into the current economic crisis and a larger degree of the same mistakes will only create a much larger crisis down the road.
Unfortunately, most of the clueless politicians in Washington received ivy league educations from institutions like Harvard, and don't understand the difference between Keynesian Economics and real economics. Real economics, otherwise known as Austrian Economics, is an understanding that the free market should be allowed to work for itself.
The free market says the economy is in need of a recession. By trying to prevent a much-needed recession, the Keynesians in Washington are inadvertently creating a currency crisis in which the U.S. dollar will rapidly lose its purchasing power. Unless the Federal Reserve reverses course immediately, we believe the U.S. economy is ultimately headed for Zimbabwe-style hyperinflation.
Food prices rose by the most in April than in any month in over a year. As evidenced in our latest "quick inflation alert" video from Food4Less in Southern California, in some discount supermarkets it now costs between $3.81 and $4.20 for a loaf of bread and $3.98 for a pound of the cheapest brand of cheese.
For the millions of American families on fixed incomes, the last thing they need is inflation. Many of these families are already spending every penny on necessities like food and energy; even the slightest increase in food and energy prices could be catastrophic.
If rising Real Estate and stock market prices are what Keynesian economists would like to see, they need to realize that with a glut of houses on the market and major corruption in the stock market, the same monetary inflation needed to create a 10% increase in Real Estate and stock market prices, might also create a 100% increase in food and energy prices.
It's a shame that college students waste hundreds of thousands of dollars on ivy league educations that teach the wrong economics. They are graduating with huge debts, no jobs, and no idea of how the economy actually works. At least the hyperinflation they are creating will make it easy for them to pay off their student loans in the future." If you would like to prepare for hyperinflation, please sign-up for the free NIA newsletter at http://inflation.us and spread the word about us to those you care dearly about.
About us: The National Inflation Association is an organization that is dedicated to preparing Americans for hyperinflation. The NIA offers free membership at http://www.inflation.us and provides its members with articles about the economy and inflation, news stories, important charts not shown by the mainstream media; YouTube videos featuring Jim Rogers, Marc Faber, Ron Paul, Peter Schiff, and others; and profiles of gold, silver, and agriculture companies that we believe could prosper in an inflationary environment.
Gerard Adams
866 677 3198
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I share the concern about hyper-inflation. But tell us, is there another solution to a deep deflation, other than inflation?
“How will we avoid hyper-inflation, somebody tell me?”
Abolish the Fed. Restore a free market in money.
Am I kinda correct....every single failed bank that came up over the past six months....was run by Harvard grad’s?
“But tell us, is there another solution to a deep deflation, other than inflation?”
Yes. Let prices decline. Save capital. Produce more.
“Am I kinda correct....every single failed bank that came up over the past six months....was run by Harvard grad’s?”
I don’t think it was 100% Harvard, but damned close ... the others were like minded Ivy League schools I believe.
The economy has to start to grow again before inflation becomes a problem. If the economy doesn't grow, which seems to be the intent of this administration, inflation will just be an academic debating point.
Apparently, the Harvard Law grad in the White House agrees.
We will change the way we measure inflation: we will change the way we report on the status of the money supply, we will change the composition and weights of baskets of goods used to calculate various economic indexes, and we will apply subsidies to enough (now) highly-weighted goods still contained in those baskets to appropriately screw with measures of the GDP deflator, CPI, PPI, PCE, etc. Everything suitably justified of course.
At the end of the day, we will report that inflation is tamed to some very low number, and you will have to accept that YOUR experience (and that of everyone you know) is just anecdotal.
Is that why Zimbabwe has hyper inflation, because of growth?
I don't think so.
OK, then.... What fun their meetings must be.
Along with the country (Bush, Harvard MBA) and the Treasury (Paulson, Harvard MBA), GM (Wagoner, Harvard MBA)... the list goes on and on and on.
Harvard is a cancer upon the land.
Be careful what you wish for.
Because you might just get it.
We have an over-inflated money supply, but it's not that over-inflated. Our bond rating is triple A headed towards double A. Zimbabwe doesn't even have a rating anymore.
I haven't read any conservative economist that thinks inflation will be a problem without a return of growth to the US economy.
“Be careful what you wish for.
Because you might just get it.”
I’m not scared. If the free market works for every other commodity, why not money? Plus, there are historical examples.
Politics and economics shouldn’t mix. What Obama and the Dems are doing to the economy hasn’t ever worked anywhere on Earth. Yet we are being led over the cliff like lemmings. What statemen these politician are, Dem. & Rep. They sicken me. DO THE RIGHT THING, DAMN IT!
This is exactly what the PRC is advocating when they call for an end to the dollar as the world’s dominate reserve currency and for the adoption of the Bancor as the world’s reserve currency.
If the PRC (and other nations who are beginning to come around to the PRC’s position) is successful in this, watch out, there’s going to be a period of rather severe adjustment for Americans - rather like the 70’s, where we have inflation and high unemployment (which Fed economists will still tell you ‘cannnot happen at the same time’).
“I haven’t read any conservative economist that thinks inflation will be a problem without a return of growth to the US economy.”
Inflation is a problem in any case. It always distorts the market. It’s just never as big a problem when we’re not in, or heading toward, a boom.
What i want to know is, am I wrong to be concerned. The Dem's and the media seem to believe that the feds will control the money supply perfectly (this time). I just don't think it's possible.
In an import-heavy, service-based debtor economy such as ours... you should be scared. Very scared.
If we had the financial soundness of the 1930’s (funny to say that, but yes, we as a nation were more fundamentally sound then than we are now), it wouldn’t be a big deal.
But in today’s kabuki theatre of finance? Oh yea... elimination of the Fed would be rather interesting.
Because you see, you’re forgetting that the Fed has TWO missions. You’re thinking that the Fed acts only as the ECB does — promoting sound money, setting interest rates and that sort of thing.
The Fed’s other mission - euphemistically called “open market operations” comes into play when the turds hit the turbine blades in stock, debt and derivatives markets. Without the Fed in place last October, Wall Street would have imploded. Not just Lehman — ALL of them would have imploded. AIG would have imploded. And when AIG went down, there would have been immediate coupling to European banks, who would have then back-coupled over here.
One of the reasons why the dollar/euro trade reversed so suddenly and resoundingly last autumn is that it became painfully clear that the Euro is a currency without a single Treasury behind it, and that the ECB did not have any clue what to do as a “lender of last resort” as the Fed knows how to do. The reason why everyone piled into T-bills and Treasuries in October/November was that the world knew that the Fed was there to backstop the US financial system.
Now, as sympathetic as I am to the idea of getting the Fed’s mitts out of money markets, we have to address the issue of “who backstops the financial sector when (not if) they implode?” Because they do, you see — about every 60 years, the bankers blow themselves up - and the rest of us get wounded by flying bits of shrapnel, rich hand-polished bits of teak and other fine woods as their desks go flying hither and yon, and the occasional bit of flying bone fragment from the bankers themselves.
This is not the first time the banking system of the US has melted down; It happened in 1873 - and there was no Fed. It happened in 1837 - and the precursor to the Fed went down with them. Both times, the knock-on impacts were severe and long lasting. It happened in 1932/1933 and the Fed did many wrong things, making it worse.
This time, the Fed has done some things right, some other things wrong. On the whole, they’ve done more things right than they did in ‘32/’33, but they still don’t have a SOP manual for “When Bankers Blow Themselves Up: A Handbook for the Fed Chair and President of The FRBNY...”
Part of our problem this time is in one man: TurboTax Timmy. He was head of the FRBNY - and this is the bank where we need someone who really knows the markets and banks well. Timmy is clearly out of his depth in both subjects.
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