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To: CutePuppy

Thanks for the kind words. I’ve posted the same before on FR and received angry responses. I guess some people, including Conservatives fall for the propaganda.

If one looks at long term charts, the really harmful or noteworthy periods of inflation in the United States were due to war. Our only period of hyperinflation was after and I believe during the Revolutionary war.

Countries like Venezuela and Zimbabwe are different. Their governments destroyed production and the politicians stole what money or assets they could.


63 posted on 10/22/2015 6:57:20 PM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: Moonman62; CutePuppy
Reagan has a huge war expenditure and that should have generated inflation according to your theory, but it did not. The reason is simple: conservative monetary policy. That slowly ended with Greenspan.

Inflation in Venezuela is due to printing money. Inflation in Zimbabwe was due to printing money. The reason that they printed money is because they previously destroyed production and stole (confiscated) assets and they wanted to pay out welfare payments without any tax base. Solution: print money.

The main reason our own money printing doesn't create (much) inflation is that the printed money is being used to buy assets from banks and being handed to politicians . The politicians are not turning around and handing it out as welfare to any great extent like the Venezuelans do. So it is not creating a lot of real inflation. But it is creating some as previous posters have noted.

64 posted on 10/22/2015 7:06:57 PM PDT by palmer (Net "neutrality" = Obama turning the internet over to foreign enemies)
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