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"Inflation is always and everywhere a monetary event."

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ThreeTrees Posted: Mon, May 10 2010 5:26 AM

http://preview.bloomberg.com/news/2010-05-10/ecb-to-buy-government-bonds-in-unprecedented-bid-to-save-euro-stop-crisis.html

The European Central Bank is now openly monetizing government debt, just as Mises knew it would.  Bring on the crack-up boom.

"...I feel, for instance, that I have the right to do anything I please. But, if I do something you don't like, I think you have the right to kill me." -George Carlin
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I think you mean "inflation is always and everywhere a monetary phenomenon" and it has nothing to do with Mises, Friedman said it. 

"You don't need a weatherman to know which way the wind blows"

Bob Dylan

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wolfman replied on Mon, May 10 2010 7:25 AM

Friedman said it............anyways EU needs to print money and fast.

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Yes, I did mean phenomenon and I know Friedman said it, he put it the most eloquently in my opinion which is why I chose it.

"...I feel, for instance, that I have the right to do anything I please. But, if I do something you don't like, I think you have the right to kill me." -George Carlin
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It was a big duh from the founding of Euro that it would eventually crack up.

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Merlin replied on Tue, May 11 2010 5:33 AM

Come on, a year ago 99% of investors would bet on the Euro outliving the human race.

The Regression theorem is a memetic equivalent of the Theory of Evolution. To say that the former precludes the free emergence of fiat currencies makes no more sense that to hold that the latter precludes the natural emergence of multicellular organisms.
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wolfman replied on Tue, May 11 2010 7:48 AM

The Euro will live people. The political and economic will are now too strong.

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Hard Rain replied on Tue, May 11 2010 8:03 AM

The Euro will live people. The political and economic will are now too strong.

The Zimbabwean Dollar will live people. The political and economic will (of the Mugabe regime) are now too strong. ;-)

"I don't believe in ghosts, sermons, or stories about money" - Rooster Cogburn, True Grit.
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Merlin replied on Tue, May 11 2010 8:05 AM

‘Political will’ is a catchword. “Capital” is the real deal. Using a very simplified Misesian optimal population analysis, and knowing that birth rates throughout Europe have fallen below replacement level in the ’80, it is clear that the capital stock is declining fast.

 

And without capital, the whole continent will come down like a house of cards, just like every other empire has. War and totalitarianism will follow. It is indeed a sad ending for the process that began with the Renaissance, but it is inevitable. Let us just hope that a few cities will resist the temptation and actually turn to freedom. If that happens, it shall already be a miracle.

The Regression theorem is a memetic equivalent of the Theory of Evolution. To say that the former precludes the free emergence of fiat currencies makes no more sense that to hold that the latter precludes the natural emergence of multicellular organisms.
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cret replied on Wed, May 12 2010 12:52 AM

"The European Central Bank is now openly monetizing government debt, just as Mises knew it would.  Bring on the crack-up boom."

is this true??

if the debt is monetized what does that let banks and govt do???  once monetized can they go about creating more debt???  would the new debt go possibly into new infrastructure so speed goods transport  (ie, more electric rails)??
add better tech in universites to bring more electric rails quicker???
bringing  the adjusted prices for goods for many europeans down quicker???

do you know that a crack up boom will occur???

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