Thursday, June 11, 2009

Why I Know Inflation Is Coming


This is a chart of money supply. As is shockingly evident, money supply has exploded beyond anything imaginable just a year ago. Inflation is a monetary event, growing of the money supply. When that money exits bank reserves and enters the economy prices rise and so does interest rates. Given the magnitude of monetary expansion, how can a major inflation problem be avoided? Simple amswer: It can't.-Lou

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