John Hussman: Fiscal Policy Is the Key [View article]
It's more complicated than just saying "government spending causes inflation"...
Inflation can be caused by:
1) 'Tax Cut and Borrow' economic policies causes "prices to rise to pay for the growing interest on the growing debt".
2) Trashing the dollar (keeping interest rates artificially low for too long) "causes inflation, as governments will have to deal with differences in the import/export level".
3) Unneccessary $3 Trillion Wars as "governments must both recoup the money spent and repay the funds borrowed from the central bank. War often affects everything from international trading to labor costs to product demand, so in the end it always produces a rise in prices". www.wisegeek.com/what-...
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It's more complicated than just saying "government spending causes inflation"...
Jun 10 18:56 pm
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All Comments by Just Say Whoa! »John Hussman: Fiscal Policy Is the Key [View article]
Inflation can be caused by:
1) 'Tax Cut and Borrow' economic policies causes "prices to rise to pay for the growing interest on the growing debt".
2) Trashing the dollar (keeping interest rates artificially low for too long) "causes inflation, as governments will have to deal with differences in the import/export level".
3) Unneccessary $3 Trillion Wars as "governments must both recoup the money spent and repay the funds borrowed from the central bank. War often affects everything from international trading to labor costs to product demand, so in the end it always produces a rise in prices".
www.wisegeek.com/what-...