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DeVaul

Good post, Elaine!

I too have given up on reading the mindless "market analysis" often found on even the fringe anti-establishment websites. They invariably forget to count WAR as a major reason for inflation, which history shows over and over again led to debasement of coins and later to over-printing of paper money. It is the only way to pay for grandiose imperial wars. No one country has enough gold and silver to pay for a non-essential war in a far-away land.

It is my opinion that we went bankrupt long ago as a result of the Vietnam insanity. In fact, that is when Nixon closed the gold window. Few economists make that connection over at Financial Sense Online. They just think he did it on a whim. Only a few mention wars as a reason for runnaway inflation, and only in passing-- never as the primary reason for hyperinflation.

I am glad to see that you agree with a lot of what some writers have pointed out, as it is reassuring to know that even non-economists are aware of the Bank of Japan connection, etc.

I must admit that I am no match for the schemers who created the giant paper money pyramid scheme, and I have no idea where it will all end. I find it hard to believe that the Chinese will be allowed to own anything over here, and they must know that also. I suspect they will invest in Asia and not here. I would.

By the way, I noticed in the Wall Street Journal that a flambouyant Japanese businessman was caught doing insider trading. He held a news conference and bowed low and apologized for his crime! All this BEFORE he was charged, arrested, and convicted. It appears that the Japanese at least have some shred of personal accountability left in them because this would never happen in America. The convicted white-collar criminal here leaves court proclaiming his innocence by virtue of the findings of the jury! -- as if the judge convicted him and not twelve men and women who listened to his schemes for days on end.

I wish I could see one American resign in disgrace or admit his crime without bankrupting the taxpayer and the judicial system first.

marty salo

http://www.federalreserve.gov/feedback.cfm

A nice little form to enter in comments to the Board. I've thought of suggesting a 100 basis point increase, and then wait a whgile before making further adjustment.

The way I understand inflation is if the price of things increase, then the consumers demand to be paid more and then the producers increase their asking price, retailers increase asking prices, and consumers demand to be paid more.

The way the Fed influences things is by increasing the cost of borrowing. Thus making it more difficult for businesses to expand/hire more people.

Assuming that eventually, the increased costs of shipping products from China/Long Beach to your local Wal-Mart gets passed on to Joe Consumer, in order to keep Joe Consumer from demanding more pay because his cereal is more expensive, Mr Bernanke will need to raise the costs of borrowing.

marty salo

http://www.federalreserve.gov/feedback.cfm

A nice little form to enter in comments to the Board. I've thought of suggesting a 100 basis point increase, and then wait a whgile before making further adjustment.

The way I understand inflation is if the price of things increase, then the consumers demand to be paid more and then the producers increase their asking price, retailers increase asking prices, and consumers demand to be paid more.

The way the Fed influences things is by increasing the cost of borrowing. Thus making it more difficult for businesses to expand/hire more people.

Assuming that eventually, the increased costs of shipping products from China/Long Beach to your local Wal-Mart gets passed on to Joe Consumer, in order to keep Joe Consumer from demanding more pay because his cereal is more expensive, Mr Bernanke will need to raise the costs of borrowing.

Elaine Meinel Supkis

We are entering a vicious cycle of inflation/interest rate hikes/price hikes in essentials/fire sales of non-neccessities. IE: Stagflation.

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