John Locke's Quantitative Theory of Money: "An increase in the supply of money will lead to an exactly proportionate increase in the price level. Thus, money supply expansions only cause price inflation." You just got a lot poorer this month. Did you notice? You will. The amount that you got poorer can be shown very simply in the graph below. "Inflation is everywhere a monetary phenomenon," Milton Friedman:
Take special note of this point: if you want to see what the dollar will look like in about 6 months, all you need to do is to take this chart and flip it upside down. Inflation is coming back, with a vengeance. Consequently, unemployment figures are going to rise; the value of assets are going to fall; and food, gas, clothing - the daily needs for maintaining a household - are all going to increase significantly. And if the current bailout doesn't work "as planned"? Other bailouts will likely follow, with the prospect of hyperinflation (note what the article states as the cause of this phenomenon). Want to think about the correlation between hyperinflation and total war?
Take special note of this point: if you want to see what the dollar will look like in about 6 months, all you need to do is to take this chart and flip it upside down. Inflation is coming back, with a vengeance. Consequently, unemployment figures are going to rise; the value of assets are going to fall; and food, gas, clothing - the daily needs for maintaining a household - are all going to increase significantly. And if the current bailout doesn't work "as planned"? Other bailouts will likely follow, with the prospect of hyperinflation (note what the article states as the cause of this phenomenon). Want to think about the correlation between hyperinflation and total war?
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