Talk-Polywell.org

Somehow he seems to believe that even if you create more dollars that prices won't inflate:
http://www.nytimes.com/2010/12/27/opini ... ndex.jsonp
I guess that this proves that the Nobel commitee's choosing of Al gore and Obama were not aberrations

I think his point was that printing money shouldn't be blamed for commodities price inflation because overall inflation is low (which would be counter to the argument that it is a money-printing issue). He's clearly got a different argument in support of money printing because he appears to defend it (and, like you, it would also be my position that such an argument would need a high level of scrutiny) but it was not an argument used in this article.

In this article he is only pointing out the simple reality that the US is now a competing consumer with other countries in a way it has not been before. Double the number of people at an auction and the prices go up. It's a global auction now for commodities. That's all he was saying, as far as I read it.

The real issue for commodities, IMHO, is that China is actually also one of the main mining/producers of rare-earth metals, so it is a perfect storm of production and consumption over there, which may leave us [the Western World] out in the cold, so to speak.

Out in the cold only temporarily. A closed rare earth mine is reopening in the US.

Why did it close? China dropped prices so that the mine was unprofitable.

Jccarlton wrote:Somehow he seems to believe that even if you create more dollars that prices won't inflate:

We've been "printing" like crazy since the Housing bubble broke (2007-2008). The conventional wisdom is that since housing lost 30% of value, its actually wise to print money to counter the deflationary effect. What ever the reason really is, inflation just doesn't want to go much higher than 1.2% annually.

chrismb wrote: a global auction now for commodities.

chrismb do you mean Commodities Futures?

Roger,

There is a delay between the printing and the inflation. About 24 months on average.

http://www.investors.com/NewsAndAnalysi ... Of-QE2.htm

Out in the cold only temporarily. A closed rare earth mine is reopening in the US.

Why did it close? China dropped prices so that the mine was unprofitable.

Was about to say that. There are other mines opening now as well. Rare earths are not THAT rare...

The "core" inflation rate excludes volatile food and energy. And I recall is stacked 40% with real estate which is still trying to recover from a massive bubble. By various accounts inflation is showing mostly in food and energy.