allan skye

Which Inflation Is It Anyway?

Regarding promises to pay,letters of credit etc .Several points- People stop believing the promise to pay the bearer when the bank prints too much extra money unbacked in an easily understood way -which leads to financial crisis.Politicians do have a role to play in keeping the belief going.One of the first acts of William Wallace in the 10th century apon becoming protector of Scotland was to bring Scottish wine merchants to court to pay their supplyiers in Bordeaux after they defaulted on their accounts and alot of reassurance was needed before they would let the scots have any more wine on credit.What a very high standard of writing on this comments page I must say!

Which Inflation Is It Anyway?

Well put ozzy 43!This is also a form of malinvestment if overindulged in,which of course causes bubbles in its own way and can depress profitability in the private sector and therefore proves the adage that public spending displaces private spending if indulged in excessively.