“The most rational solution to our national problem now is a dose of robust and sustained inflation so that our debts, public and private, become lower in real value. This will also make our products and factors of production internationally competitive. Just ask yourself – how many of you will buy a Honda or Toyota when it costs $50K, $100K …. How many will buy a BMW or MB when it costs 100K, 200K ….”
This is so f**king stupid it is beyond on belief. How many times do I have to explain this people? Inflation is increase in money supply not prices. In order for it to make a difference, it must make its way into your wages or it will not help sustain inflated asset prices. that is why every credit bubble in history ends up in deflation because the debt grows beyond the ability to be serviced.
Get your head out of your ass Bsharma…the Fed and the Govt can’t save your SD house anymore. Deflation psychology has set in.