In the current monetary system, however, the supply of money is not constant and the central banks of this world are free to create as much inflation (money-supply growth) as they want. There is a catch – the central banks can only do so as long as they can keep inflationary fears in check by constantly reminding the public of the threat of deflation.
May 21st, 2008 | Puru Saxena | 0 comments | ContinuedAll Posts Tagged With: "monetary inflation"
Monetary Inflation is Driving Up Prices
No need to beat around the bush about it. What this means is that monetary inflation is driving up prices. The price of oil is $112. Wheat, corn, soybeans, rice…
April 14th, 2008 | Bill Bonner | 2 comments | Continued
Who Will Win the Financial War of the Worlds?
Our hypothesis is that the fed’s efforts to inflate will show up more in the gold market than in the stock market. That - and an instinct for self-preservation - is why we’re long gold and short stocks. Stock prices depend, ultimately, on earnings. Gold’s price depends, ultimately, on inflation.
March 13th, 2008 | Bill Bonner | 0 comments | Continued