Holy cow, Batman. There really is inflation!
“Friedman’s pronouncement that inflation is caused by excessive money printing is still true. The problem in today’s economics profession is that ‘inflation’ is too narrowly defined; limited to the prices of goods and services, while asset price inflation is excluded. If inflation is defined to include asset prices, then it would be well recognized that, today, we have plenty of it.”
USAGOLD note: The problem with all of this is that no one knows where it ends. Some see the process as the Weimarization of the global economy. Others see it as the necessary remedy to demographically determined Japanese-style stagnation. Some, including a good many hedge fund managers, say common sense dictates hedging one’s bets, i.e., that it cannot possibly end well. This article defines the problem in a straightforward manner and ends with the observation that the notion of ‘trickle down’ is a “harebrained idea.”