“The institutional debasing of currencies that began a couple years ago is continuing,” Adrian Miller, the director of fixed-income strategies at GMP Securities LLC, said in a phone interview from New York. “Now the flag is being carried by the Bank of Canada.”
...puppeteers and puppets...
Here's how it really works: You Call It Inflation, I Call It Theft – By Bill Flax
"... if the dollar equals the euro and it takes a dollar to buy a dozen eggs then it too will take a euro to buy those eggs. Purchasing price parity.
ReplyDeleteBut as the dollar plummets, a euro is now worth more. Thus it takes more dollars to buy eggs, but it still takes but one euro. Domestic eggs didn’t become cheaper in euros. This isn’t some mysterious or complicated economic theory or even subject to debate. It’s elementary school mathematics: the transitive property. If A equals B and B equals C then A too must equal C. Making A not equal B doesn’t change the value of C."
Simply put. So if a dummy like me can get it?????
Like Bill Flax says, this policy rewards excessive borrowing because governments are excessive borrowers themselves. Having started this snowball rolling central banks are scared shitless to stop it. We have an economy that works only because of the availability of cheap and easy credit. Stop that and the game is up.
ReplyDelete"We have an economy that works only because of the availability of cheap and easy credit. Stop that and the game is up."
DeleteCertainly the game for politicians. But I'm afraid that if we don't stop it then every game will be up.