How to discuss Inflation?Submitted by JerseyRP on Thu, 04/28/2011 - 16:29
So I have a facebook group dedicated to Conspiracy Theories someone dropped out of and made me the admin for. I have posted mostly pro-Ron and anti-FED posts. Recently I posted the following..
Silly Bernanke wrong again. Rising oil prices do not lead to inflation. Rising oil prices is a result of inflation. Inflation is a hidden tax caused by devaluing the dollar by creating new a.k.a. counterfeiting. Don't be fooled. Inflation is not increase in pricing, it is simply an increase in the money supply.
from which someone replied...
Inflation is rising prices due to an increase in money supply. As purchasing power parity falls, companies are forced to raise prices to maintain profit margins. Due to the fed keeping rates so low money is extremely cheap and it doesn't help that they are backstopping treasury auctions and simulating demand. Once QE2 ends in June we will be able to get a cleaerer picture of the health of the economy. That is if they don't roll out QE3......And no, commodity prices have nothing to do with inflation. I think they are just looking for a scapegoat to thier free money policy. After all, they are COMPLETELY different from Greenspan right? Lol.
and I am curious the best ways and what specifically to correct him about. I already gave him a video of Peter Schiff explaining Inflation to correct him on that point.
Thanks everyone :)