You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Reply #36: "t already hasn't driven inflation" [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » General Discussion Donate to DU
melm00se Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-30-11 12:53 PM
Response to Reply #29
36. "t already hasn't driven inflation"
you sure about that?

as examples: let's look at the worldwide commodities markets:

Oil prices (+40% in the last year)
gold (+25%)
copper (+37%)
coffee (+94%)
cotton (+94%)
sugar (+60%)
soybeans (+40%)

why do you think it is? speculation? partially. The biggest thing is the weakening of the US dollar:



and why is that?

QE is certainly an explanation. QE1: $700-800B; QE2: $1.2T

The next question: how much did the economy grow during that same time? certainly nowhere near the amount of "money" injected into the economy.

The final question: historically what happens when money supplies increase faster then economic growth? review the economic history of:

Angola
Argentina
Austria
Belarus
Bolivia
Bosnia and Herzegovina
Brazil
Bulgaria
China
Free City of Danzig
Georgia
Germany
Greece
Hungary, 1922-1924
Hungary, 1945-1946
Israel
Krajina
Mexico
Nicaragua
Peru
Philippines
Poland, 1921-1924
Poland, 1989-1991
Republika Srpska
Romania
Russian Federation
Taiwan
Ukraine
Yugoslavia
Zaire
Zimbabwe

of course unless you seriously believe that the US economy doesn't follow historical precedent?

Printer Friendly | Permalink |  | Top
 

Home » Discuss » General Discussion Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC