Oct 02 2008
Cartoon Ducks Know More Than Bernanke, Paulson, Congress
Above is a video for your kids and/or those folks who just don’t seem to get it. That’s an oversimplification, of course — in the real world, not only can prices go up, the wealth contained in money is dislocated from productive activities in an economy and transferred into a phony, unsustainable economy, ala our housing bubble and Ponzi finance bubble on Wall Street.
As for the real world, below is the expansion of raw cash money supply as measured by the Austrian School that predicted this bubble and crash with the help of tracking the vast expansions over the years. Note the massive inflation started early this decade. All that wealth was ripped from the real producers in our economy and vented into areas now crashing. Meanwhile, Congress haggles over how to repeat such an activity in support of the phony economy.
