Monday, November 07, 2016

The Upshot Of Inflationism
Doug Noland: "For close to 30 years now, central bank policies have nurtured serial inflationary booms and busts. It’s a backdrop that has repeatedly forced investors, homebuyers and others into serious harm’s way. Buy or you’ll be left behind. Get aboard before it’s too late. It’s a system that systematically targets the unsophisticated and less affluent to take on a tenuous debt position to buy homes, cars and things in the name of promoting economic growth. It’s a system that devalues the wealth of savers. Somehow it’s regressed into a system with a policy objective to coerce savers and the risk averse, to ensure their buying power instead inflates the value of risky securities market assets. We’re witnessing the repercussions of a prolonged bad cycle of playing with society’s psyche: inflating untenable expectations, only to see them crushed by the fist of bursting Bubbles. Central bankers then simply press on to the more egregious extremes necessary to reflate expectations .. Even after decades of one boom and bust cycle after another, the media retain a strong bias in support of central bank activism. History is clear: inflation is problematic and, in the end, unethical and terribly destructive. Yet, amazingly, to this day the vast majority of journalists remain pro-inflationism."
LINK HERE to the essay

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