Last October, I mentioned that I had finally hit a net worth of zero, celebrating the occasion of being officially worthless. At that point I mentioned that my next step was to buy a house. I can now say that I finally did get down and buy a house, closing on June 13th). I started […]
“Inflation is always and everywhere a monetary phenomenon.” – Milton Friedman Smart guy, that Milton Friedman. I heard he won a Nobel Prize. There’s no Nobel Prize on my desk (yet), but I’m willing to strike down some of the current arguments about the coming hyperinflation, the current “under-reported” inflation, and even targeted hidden inflation […]
Media and fellow bloggers alike enjoy bemoaning the hazardous plague of inflation. I will show that not only is this argument not grounded in reality, but that it also ignores many ancillary benefits of an inflationary rate: spending encouragement, debtor relief and avoidance of a deflationary spiral.
We have dealt a lot recently with historically low interest rates and their implications on not only the cost of housing and mortgages, but also implications for consumer credit and inflation. Although we have explained home price affordability in the San Francisco Bay Area before, we haven’t discussed the large variance in regional real estate prices.
A lot of recent financial news has focused around the spreading European sovereign debt crisis. The big question many Americans now try to answer is what this means for them on a day-to-day basis. At the same time as this is happening, the Fed has declared that they will endorse a policy of more transparency, opening up their forecasts to scrutiny and understanding.
I recently came across Jodi Beggs’s awesome (and tongue in cheek, and that’s a compliment from a site called DQYDJ!) economics site, “Economists Do It With Models“. Perusing her recent history, I came across an article entitled “Adventures in Fact-Checking, GOP Debate Edition” where Jodi fact checked some statements made by Mitt Romney and Newt Gingrich and found them, on the surface, to be false. Fair enough – the candidates both made statements to the effect that Ben Bernanke is the most inflationary Fed Chair ever. Playing fast and loose with the facts is wrong, but I don’t entirely like how Ms. Beggs ranked the Chairmen – by annualized inflation during their term. To explain why I’ll turn to an unlikely (yet, strangely appropriate) place- baseball.
I’d be remiss if I didn’t highlight Warren Buffett’s post today in the New York Times. Buffett is never lacking with a quote or an opinion, and on the topic of deficit spending he’s no different. Hilariously, he refers to the massive influx of liquidity into the economy as “Greenback Emissions”. I definitely agree with Buffett on this topic; we’re in for a pretty good amount of inflation if the government doesn’t dial back it’s money printing efforts.