Inflation Around the World
IFO has had occasion to reprimand one of the writers on the Dividend.com website for total ignorance of economic realities. This seems to be another writer, who has clarified a question that has long puzzled some of us less sophisticated economy watchers.
With all of the stimulus programs presidents Bush and then Obama pushed through an overly-compliant Congress allegedly pouring “money” into the US economy, why didn’t things pick up? Where were the alleged “shovel-ready jobs?” and WHY NO INFLATION?
Remember, many liberal economists think “a little” inflation is a good thing. Even our favorite, Uncle Miltie, Dr. Milton Friedman, who was also one of the fathers of that bastard known as the federal income tax withholding from a workers paycheck by employers.
Here’s what today’s unnamed contributor to Dividend.com says:
“Markets tend to be coincident or leading indicators of economic direction, and they are signaling trouble. This time, the likely culprit is the huge global indebtedness that is acting as a powerful deflationary force that all the wildly stimulative monetary creation by central bankers can’t overcome.”
There you have it, in the most concise summary IFO has ever read. We’ll just leave it here for you and me to ponder.
Oh, BTW, oil prices sank again – now in the $33/bbl range. Lowest in a decade or more.