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Monetary Policy

Market Rally May Boost General Economy Until New Debt Creates Real Crisis

Thu, 04/09/2009 - 01:00 — Dr. B.
Dr. B. shows why the US stock market may be manipulated in the positive direction for a time, temporarily boosting the US economy. However, the enormous debt incurred by the US government will cause a much more significant crisis over the next few years.

A massive amount of quantitative easing (money supply inflation) is underway in the U.S. and around the world. The Bank of England, for example, has committed 75 billion pounds ($111 billion U.S.) to purchase government bonds and corporate paper.

How Much Inflation Is There, Really?

Mon, 08/25/2008 - 00:00 — Dr. B.
This response to an article regarding recent inflation figures shows a broader view of the true inflation picture, and how it will really impact the United States economy.

Why is U.S. monetary policy continually burdened by economic fallacies? Supposedly, ‘real inflation’, is not a threat as long as wage inflation does not create an inflationary spiral (feedback loop). Nonsense. Irwin Kellner, Marketwatch Chief Economist, correctly argues that it is later than most people think because U.S. inflation has found drivers independent of U.S. wages.

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