Comments on: Inflation Continuing to Wreak Havoc On Our Economy http://www.dailyreckoning.com.au/inflation-havoc-economy/2008/12/09/ An independent perspective on the Australian and global investment markets Fri, 19 Mar 2010 11:05:32 +0000 http://wordpress.org/?v=2.8 hourly 1 By: U.S. Recession: Is the End Nigh? | Bear Market Investments http://www.dailyreckoning.com.au/inflation-havoc-economy/2008/12/09/comment-page-1/#comment-64559 U.S. Recession: Is the End Nigh? | Bear Market Investments Thu, 05 Feb 2009 17:26:55 +0000 http://www.dailyreckoning.com.au/?p=4584#comment-64559 [...] Inflation Continuing to Wreak Havoc On Our Economy [...] [...] Inflation Continuing to Wreak Havoc On Our Economy [...]

]]> By: Jon Bain http://www.dailyreckoning.com.au/inflation-havoc-economy/2008/12/09/comment-page-1/#comment-56565 Jon Bain Wed, 10 Dec 2008 22:58:55 +0000 http://www.dailyreckoning.com.au/?p=4584#comment-56565 The increase in credit is not the same as the increase in cash. The banks only allow a certain amount of cash to flow. This should keep cash supply in tune with food supply. So long as the banks keep a limit as to how much cash is in circulation, food prices will not go up. This is the most important mechanism in our daily survival, and keeping HMS Planet Earth on an even keel. If there is too much food being paid for in plastic, then the plastic money just gets turned off. The increase in credit is not the same as the increase in cash. The banks only allow a certain amount of cash to flow. This should keep cash supply in tune with food supply. So long as the banks keep a limit as to how much cash is in circulation, food prices will not go up. This is the most important mechanism in our daily survival, and keeping HMS Planet Earth on an even keel.

If there is too much food being paid for in plastic, then the plastic money just gets turned off.

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