FREE SPEECH if you dare!

Constitutionally Advocating Limited Government, Personal Liberty, & Free Markets. {URL}.

Thursday, February 26, 2009

The Monetary Bubble... The Invisible Phase

While a plethora of economists semi-blindly examines the current deflationary macro-economic trend, reality speaks to the fact that a massive wave of inflation is here. Before anybody calls me crazy... this potential monetary bubble is cycling through the economic phase which I theorize as the "Invisible Phase."

Television propaganda barks to the converted about company x laying off 50,000 individuals while company y economically disperses another few billion dollars. Soon, overly emotional laden talking heads take stage while basically adding to the simplistic theory of deflation. Because Keynesian and Austrian economists are at odds philosophically when it comes to the subject of inflation, their solutions radically differ.

As typical Keynesian do not give credence to the connection between money printing and the case being high inflation, these economists/bankers/activists indoctrinate to the world that printing high volumes of money has positive employment consequences. While their simple minds conclude that inflation is a pure macro-economic price elevation without any reason, various Austrian economist's [Ludvig von Mises, F.A. Hayek,etc.] theory of inflation says in a nutshell that the economic laws of supply and demand also apply to the printing of money. Hence... the more monetary units that is reproduced, the more expensive commodities eventually become.

Yes... the year of 2009 has definitely been documented as a highly deflationary year. Prices have heavily slumped, unemployment has risen while businesses big and small continue to bleed. The armchair Keynesian are shaking a finger at the idea that throughout the history of mankind, correlations have been drawn that by printing massive amounts of banknotes,inflation, including hyperinflation during the rare instance, has a high potential to come into reality.

So... where and when does this monetary bubble start to show signs of movement? Gaze at the St. Louis Federal Reserve System's Inflation Chart [m1]. Take note of the high monetary ascension during the past year [2008-2009].

It is time to give fair warning to citizenry. Keep one eye on the deflationary descents and the other on the monetary inflation. While it is not directly evident that inflation is coming, in reality, this market force is quickly adding up. This "Invisible Phase" of inflation is a warning to customers of the global economy that change is around the corner. During this period of deflation, money is rapidly being printed out of the thin air... meaning money is printed heavily, yet business is declining while unemployment is on the rise.

The central planer's blueprints are in front of us. By spending lots of inflationary money, this "Invisible Phrase," will in time lead the global economy towards the later version of this artificial growth; high and potentially artificial prices.


View blog authority

Labels: , , , ,

Friday, February 20, 2009

No More Beat The Clock

Long long time ago, congressional monetary legislation was commonly gauged in units of millions. As legislative entropy has been inching its way into the trillion dollar land, omnipotent forces have created a possible crash square in the middle of more hurry up legislation.

Most recently, the so called "stimulus" legislation had added to the already unbelievably high numbers permeating the DC area. The across the board plotting of the course of current runaway spending is one very damaging consequence to our republic. All this grandstanding was once again acted upon with a stopwatch clicking and no time to think. Are these most important actions government at work or just another day of speed dating?

By creating a single act of legislation, the often corrupt officials are able to guide their reasoning towards enlightenment. Additionally, the current buzzword "transparency" might actually have a chance to get even a bit closer to reality while a greater segment of the citizenry is able to actually gaze upon its legislation.

Washington, DC's pro-small government advocates,Downsize DC has been advocating for a long while with an idea which would at least force a temporary timeout in order to create time for Senators and Congressmen to very carefully study upcoming legislation. In short, Downsizing DC advocates that all bills in Congress ought to have at least a seven day shelf life before a vote is casted. This potential legislation is known as the Read the Bills Act.

Yes... it is true that any legislative scheme will never be one hundred percent free from political disgrace, but lets require our ever increasingly less reliable politicians to study our incrementally larger legislative process. Potentially corrupt bodies occupying space on Capital Hill must be expected to be accounted for an actual vote of reason. One way to eliminate this governmental mismanagement is to gut anymore speed rounds of "legislative beat the clock."


View blog authority

Labels: , ,