- “…maybe a massive bout of global inflation is the only way forward.”
- – Alen Mattich, WSJ
Those crazy moonbat goldbugs over at Wall Street Journal are at it again. Next thing you know they’ll be advising the plebes to buy gold.
- “When set against the fact that the government has lost control of its finances, the long-run inflationary threat posed by fiscal and monetary policy is huge. But the dollar’s position is made even more precarious by the zero interest rates being pursued by the Fed in response to economic weakness.
- “On an interest-rate parity basis, then, the dollar needs to depreciate rapidly and considerably–in order to offset the future inflationary surge and the current lack of yield.
- “But this is exactly what the U.S. economy needs, isn’t it? A dollar devaluation.
The WSJ article is a review of John Hussman’s ‘Weekly Market Comment’. Hussman is no more moonbat than the WSJ; he has a little over $6 Billion under management. Follow the embedded link below and read Hussman’s piece; warning, though, it’s a bit wonky. The title of the paper? “Why Quantitative Easing is Likely to Trigger a Collapse of the U.S. Dollar.” Hussman includes this from Ludwig vonMises:
- “Von Mises wrote, ‘A government always finds itself obliged to resort to inflationary measures when it cannot negotiate loans and dare not levy taxes, because it has reason to fear that it will forfeit approval of the policy it is following if it reveals too soon the financial and general economic consequences of that policy. Thus inflation becomes the most important psychological resource of any economic policy whose consequences have to be concealed; and so in this sense it can be called an instrument of unpopular, that is, of antidemocratic policy, since by misleading public opinion it makes possible the continued existence of a system of government that would have no hope of the consent of the people if the circumstances were clearly laid before them.