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
Paul Krugman Is An Idiot
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.
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.
Re: Paul Krugman Is An Idiot
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.Jccarlton wrote:Somehow he seems to believe that even if you create more dollars that prices won't inflate:
chrismb do you mean Commodities Futures?chrismb wrote: a global auction now for commodities.
I like the p-B11 resonance peak at 50 KV acceleration. In2 years we'll know.
Roger,
There is a delay between the printing and the inflation. About 24 months on average.
http://www.investors.com/NewsAndAnalysi ... Of-QE2.htm
There is a delay between the printing and the inflation. About 24 months on average.
http://www.investors.com/NewsAndAnalysi ... Of-QE2.htm
Engineering is the art of making what you want from what you can get at a profit.