Current Events

Re: "Inflation is always and everywhere a monetary event."

cret — Wed, 12 May 2010 06:52:34 GMT

"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???

Re: "Inflation is always and everywhere a monetary event."

Merlin — Tue, 11 May 2010 14:05:52 GMT

‘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.

Re: "Inflation is always and everywhere a monetary event."

Hard Rain — Tue, 11 May 2010 14:03:13 GMT

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. ;-)

Re: "Inflation is always and everywhere a monetary event."

wolfman — Tue, 11 May 2010 13:48:30 GMT

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

Re: "Inflation is always and everywhere a monetary event."

Merlin — Tue, 11 May 2010 11:33:51 GMT

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

Re: "Inflation is always and everywhere a monetary event."

Caley McKibbin — Mon, 10 May 2010 19:05:13 GMT

It was a big duh from the founding of Euro that it would eventually crack up.

Re: "Inflation is always and everywhere a monetary event."

ThreeTrees — Mon, 10 May 2010 19:01:05 GMT

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.

Re: "Inflation is always and everywhere a monetary event."

wolfman — Mon, 10 May 2010 13:25:09 GMT

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

Re: "Inflation is always and everywhere a monetary event."

hayekianxyz — Mon, 10 May 2010 11:51:44 GMT

I think you mean "inflation is always and everywhere a monetary phenomenon" and it has nothing to do with Mises, Friedman said it.

"Inflation is always and everywhere a monetary event."

ThreeTrees — Mon, 10 May 2010 11:26:28 GMT

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.