Just what is Inflation?

[murtagh]

http://www.ritholtz.com/blog/2008/12/1933-inflationdeflation-movie/

I found this depression-era educational film very, um, educational!

Very interesting to see both the explanation of inflation, and the intended outcomes (ie: ending the depression).

And very timely given it looks like the U.S. is gearing up the printing presses again.

 

[plusnq]

Got to love those old news reels

Thx

Shane

 

[Piston Broke]

Misleading, lies & deception are timeless.

 

[murtagh]

Misleading, lies & deception are timeless.

Is that really the case here though?

Surely the forced inflation in the economy was a contributing factor to the ending of the depression?

 

[murtagh]

Guess what just popped up: http://www.forbes.com/finance/inves...n_fb_1209soapbox_inl.html?feed=rss_popstories

So we now have "inflation" being suggested as the saviour for the modern crisis as well.

It is very interesting to note the "It'll be good for you! It's the right medicine!" tone of both the 1930's film and the 2008 article.

 

[FHB]

Guess what just popped up: http://www.forbes.com/finance/inves...n_fb_1209soapbox_inl.html?feed=rss_popstories

So we now have "inflation" being suggested as the saviour for the modern crisis as well.

It is very interesting to note the "It'll be good for you! It's the right medicine!" tone of both the 1930's film and the 2008 article.

Some might argue the Fed is already using inflation to save us. The comparison with 1929 is awful. Back then they used the gold standard to devalue the currency. It doesn't exist anymore, and on top of that, many asian countries provide the debt that is to be reduced by this devaluation of currency. They will be severely punished, and unlikely to provide more. The result would be no lending at all. Frank hasn't thought this through very well.