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Carl Veritas
ParticipantSignaled by rising prices, the housing industry ramped up production to meet consumers demand, funded by rising home equity values and fueled by cheap bank credit—instigated by the Federal Reserve.
It didn’t matter that the demand was not derived from consumers rising incomes, the industry followed the signal just the same. Once the same Federal Reserve tightens the money spigot, all the activities that sprung on the back of the boom is halted. This is what we are experiencing now.
Price aligns production with consumption in the free market. So that a rising price attracts capital to meet the demand. Manipulating the price of money (interest rates) instead of letting the supply of loanable funds dictate the price distorts the production process—via the business loan market.
The illusion of prosperity lasts as long as the money spigot is open. The worlds central bankers are again poised to mess with the price signal, they call it liquifying the system.ParticipantSignaled by rising prices, the housing industry ramped up production to meet consumers demand, funded by rising home equity values and fueled by cheap bank credit—instigated by the Federal Reserve.
It didn’t matter that the demand was not derived from consumers rising incomes, the industry followed the signal just the same. Once the same Federal Reserve tightens the money spigot, all the activities that sprung on the back of the boom is halted. This is what we are experiencing now.
Price aligns production with consumption in the free market. So that a rising price attracts capital to meet the demand. Manipulating the price of money (interest rates) instead of letting the supply of loanable funds dictate the price distorts the production process—via the business loan market.
The illusion of prosperity lasts as long as the money spigot is open. The worlds central bankers are again poised to mess with the price signal, they call it liquifying the system.ParticipantSignaled by rising prices, the housing industry ramped up production to meet consumers demand, funded by rising home equity values and fueled by cheap bank credit—instigated by the Federal Reserve.
It didn’t matter that the demand was not derived from consumers rising incomes, the industry followed the signal just the same. Once the same Federal Reserve tightens the money spigot, all the activities that sprung on the back of the boom is halted. This is what we are experiencing now.
Price aligns production with consumption in the free market. So that a rising price attracts capital to meet the demand. Manipulating the price of money (interest rates) instead of letting the supply of loanable funds dictate the price distorts the production process—via the business loan market.
The illusion of prosperity lasts as long as the money spigot is open. The worlds central bankers are again poised to mess with the price signal, they call it liquifying the system.ParticipantSignaled by rising prices, the housing industry ramped up production to meet consumers demand, funded by rising home equity values and fueled by cheap bank credit—instigated by the Federal Reserve.
It didn’t matter that the demand was not derived from consumers rising incomes, the industry followed the signal just the same. Once the same Federal Reserve tightens the money spigot, all the activities that sprung on the back of the boom is halted. This is what we are experiencing now.
Price aligns production with consumption in the free market. So that a rising price attracts capital to meet the demand. Manipulating the price of money (interest rates) instead of letting the supply of loanable funds dictate the price distorts the production process—via the business loan market.
The illusion of prosperity lasts as long as the money spigot is open. The worlds central bankers are again poised to mess with the price signal, they call it liquifying the system.ParticipantScenes from the ER—-
Nurse: But Dr Ben, you are prescribing the same medicine that got the patient violently ill!
Dr Ben: I’ve have made up my mind so don’t go confusing me with facts. This time I’m tweaking the dosage. Nurse, quickly inject the patient with 1/2 point cut! and leave the medicine bottle near the bed in case it doesn’t recover from its coma in 3 months.
ParticipantScenes from the ER—-
Nurse: But Dr Ben, you are prescribing the same medicine that got the patient violently ill!
Dr Ben: I’ve have made up my mind so don’t go confusing me with facts. This time I’m tweaking the dosage. Nurse, quickly inject the patient with 1/2 point cut! and leave the medicine bottle near the bed in case it doesn’t recover from its coma in 3 months.
ParticipantScenes from the ER—-
Nurse: But Dr Ben, you are prescribing the same medicine that got the patient violently ill!
Dr Ben: I’ve have made up my mind so don’t go confusing me with facts. This time I’m tweaking the dosage. Nurse, quickly inject the patient with 1/2 point cut! and leave the medicine bottle near the bed in case it doesn’t recover from its coma in 3 months.
ParticipantScenes from the ER—-
Nurse: But Dr Ben, you are prescribing the same medicine that got the patient violently ill!
Dr Ben: I’ve have made up my mind so don’t go confusing me with facts. This time I’m tweaking the dosage. Nurse, quickly inject the patient with 1/2 point cut! and leave the medicine bottle near the bed in case it doesn’t recover from its coma in 3 months.
ParticipantScenes from the ER—-
Nurse: But Dr Ben, you are prescribing the same medicine that got the patient violently ill!
Dr Ben: I’ve have made up my mind so don’t go confusing me with facts. This time I’m tweaking the dosage. Nurse, quickly inject the patient with 1/2 point cut! and leave the medicine bottle near the bed in case it doesn’t recover from its coma in 3 months.
ParticipantBureau Of Labor Statistics (www.bls.gov) website
has a cpi inflation calculator under the heading Inflation & Prices. You can enter dates and it calculates the dollars debasement rate. Here is one result from the calculator—-1913 — $1.00
is the equivalent of
2008 — $22.10
Perhaps the money supply contraction and expansion we experience are the shorter term result of Central Bank monetary policies, on the path of persistent loss of purchasing power.
ParticipantBureau Of Labor Statistics (www.bls.gov) website
has a cpi inflation calculator under the heading Inflation & Prices. You can enter dates and it calculates the dollars debasement rate. Here is one result from the calculator—-1913 — $1.00
is the equivalent of
2008 — $22.10
Perhaps the money supply contraction and expansion we experience are the shorter term result of Central Bank monetary policies, on the path of persistent loss of purchasing power.
ParticipantBureau Of Labor Statistics (www.bls.gov) website
has a cpi inflation calculator under the heading Inflation & Prices. You can enter dates and it calculates the dollars debasement rate. Here is one result from the calculator—-1913 — $1.00
is the equivalent of
2008 — $22.10
Perhaps the money supply contraction and expansion we experience are the shorter term result of Central Bank monetary policies, on the path of persistent loss of purchasing power.
ParticipantBureau Of Labor Statistics (www.bls.gov) website
has a cpi inflation calculator under the heading Inflation & Prices. You can enter dates and it calculates the dollars debasement rate. Here is one result from the calculator—-1913 — $1.00
is the equivalent of
2008 — $22.10
Perhaps the money supply contraction and expansion we experience are the shorter term result of Central Bank monetary policies, on the path of persistent loss of purchasing power.
ParticipantBureau Of Labor Statistics (www.bls.gov) website
has a cpi inflation calculator under the heading Inflation & Prices. You can enter dates and it calculates the dollars debasement rate. Here is one result from the calculator—-1913 — $1.00
is the equivalent of
2008 — $22.10
Perhaps the money supply contraction and expansion we experience are the shorter term result of Central Bank monetary policies, on the path of persistent loss of purchasing power.
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