Comment: I love to hear that... :)

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wolfe's picture

I love to hear that... :)

I actually believed exactly as he did probably no more than 5 years ago. But I couldn't resolve the differences in theoretical inflation/deflation with what I saw occurring. Which is why I enjoy the discussion. And it isn't about which of us is right, but that we all get smarter from the discussion... :)

So I spent a lot of time trying to understand why what looks right on paper, wasn't right in the real world. And it boils down to the fact that textbook inflation/deflation (commodity supply) isn't what we have and so the mechanics are quite different.

Having a system of perpetual inflation without deflation, and without randomness is what creates the stagflation mechanism that we have. It is also the primary thing killing the middle class, and widening the wealth gap.

The Philosophy Of Liberty -