Comments on: Reader Mail: China Buying African Resources, Boom Starts With Iraq War http://www.dailyreckoning.com.au/reader-mail-6/2007/07/12/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 10:39:45 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Bart Hall (Kansas, USA) http://www.dailyreckoning.com.au/reader-mail-6/2007/07/12/comment-page-1/#comment-2578 Bart Hall (Kansas, USA) Thu, 12 Jul 2007 12:30:59 +0000 http://www.dailyreckoning.com.au/reader-mail-6/2007/07/12/#comment-2578 First, and primarily (as one with rather more degrees in the sciences than I actually need) ... coincidence does not equal <i>causality</i>. A war 'costing' something on the order of one-tenth the annual US increase in money supply simply cannot drive what we have been seeing, especially remembering that those military now Iraq and elsewhere do carry a substantial overhead cost regardless of where they are stationed. Inflation (and its associated booms) are pretty much everywhere and always a monetary phenomenon. The substantial inflation of the '70s arrived in a time of relative peace (under a peace-nik president) and fully a decade after the massive military expenditures associated with Viet-nam. First, and primarily (as one with rather more degrees in the sciences than I actually need) ... coincidence does not equal causality.

A war 'costing' something on the order of one-tenth the annual US increase in money supply simply cannot drive what we have been seeing, especially remembering that those military now Iraq and elsewhere do carry a substantial overhead cost regardless of where they are stationed.

Inflation (and its associated booms) are pretty much everywhere and always a monetary phenomenon. The substantial inflation of the '70s arrived in a time of relative peace (under a peace-nik president) and fully a decade after the massive military expenditures associated with Viet-nam.

]]> By: André Levy http://www.dailyreckoning.com.au/reader-mail-6/2007/07/12/comment-page-1/#comment-2575 André Levy Thu, 12 Jul 2007 06:54:48 +0000 http://www.dailyreckoning.com.au/reader-mail-6/2007/07/12/#comment-2575 "Still, the retail boom in America-and all the aftershocks of increased capital spending in China and mining activity in Australia-starts with the expansion of credit more than the expansion of military hostilities"... ... unless of course the expansion of credit starts with military hostilities, as a means to fund war with inflation tax. "Still, the retail boom in America-and all the aftershocks of increased capital spending in China and mining activity in Australia-starts with the expansion of credit more than the expansion of military hostilities"...

... unless of course the expansion of credit starts with military hostilities, as a means to fund war with inflation tax.

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