The amount of deflation rhetoric in the mainstream media has been continuing to surge this week. Yesterday there was an article in the Wall Street Journal entitled, “Defending Yourself Against Deflation” and on Monday Paul Krugman wrote an editorial in the New York Times entitled, “Why Is Deflation Bad?”. We decided to do a simple [...]
Continue reading...Sunday, July 25, 2010
Speaking today on CNN’s “State of the Union,” former CIA Director Michael Hayden insisted that during his term in office the prospect of America attacking Iran was “way down the list,” but that now it seems that such an attack “seems inexorable.” Hayden noted that no matter what the US does diplomatically, Iran has continued [...]
Continue reading...Sunday, July 25, 2010
Wars almost by definition are inflationary. This has been true since almost the beginning of time. Inflation is determined by the quantity of goods vs. the available money supply. See The Definition of Inflation The very nature of War results in the destruction of goods. But in normal times money is spent to produce goods [...]
Continue reading...Saturday, June 19, 2010
By Mike Hewitt Angola (1991-1999) Angola went through the worst inflation from 1991 to 1995. In early 1991, the highest denomination was 50,000 kwanzas. By 1994, it was 500,000 kwanzas. In the 1995 currency reform, 1 kwanza reajustado was exchanged for 1,000 kwanzas. The highest denomination in 1995 was 5,000,000 kwanzas reajustados. In the 1999 [...]
Continue reading...Saturday, June 19, 2010
There seems to be some confusion about Hyperinflation.Do you know that in 95% of all historic cases of hyperinflation it begins during either a deflationary depression or deep deflationary recession? The other 5% is brought about by political stupidity as in Zimbabwe. Here was the latest numbers measuring CPI. I am citing the article written [...]
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Wednesday, August 4, 2010
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