Thomas J. Gordon

The Intrinsic Value of Nothing, Part 1

Tetrapod: I find this Austrian argument that if you increase the money supply you have inflation for that reason alone unconvincing. If you don't see the response in the prices of things people buy every day then it's not inflation. There is velocity, there is your money being used as a reserve currency, there are many things that translate increased money supply into inflation. If the Austrian school wants to give a name to increasing the money supply, then call it something other than inflation.

The Intrinsic Value of Nothing, Part 1

A lot of us have lamented gov't spending in excess of tax take. It's not clear to me that genuine borrowing (borrowing with the intent of paying it back later) is inflationary. Although clearly the u.s. is borrowing a lot more than they have in the past and you would think that would have a bad effect somewhere, at minimum drive interest rates up. but so far obama and geithner are getting away with it. they are spending a ton of money they don't have and there are no new bad effects. no inflation (defined as a rise in the overall price level), u.s. treasury rates are low, the stock market is rising. so when do obama and geithner pay the piper?