March 4, 2012
Pity poor brother jg. Any other right-leaning blog would hop on his "Stealthflation" bandwagon and give him a heroic ride to the store to purchase overpriced commodities. Yet he encounters extreme obstinacy at ThreeSources. Has he a new ally in brother Bryan? Time will tell.
Milton Friedman said "Inflation is always and everywhere a monetary phenomenon" and argued for a rules-based "computer" FOMC. I would happily buy into that.
Twenty years ago, most well-off US citizens owned a camera, a video camera, a CD player, a stereo, a video game console, a cell phone, a watch, an alarm clock, a set of encyclopedias, a world atlas, a Thomas Guide, and a whole bunch of other assets that easily add up to more than $10,000. All of which come standard on today's smart phones...that's how quickly $10,000 worth of expenses can vanish.
I suggest that ten grand buys a few tortillas, and that corn prices are affected almost as much by ethanol mandates and subsidies as monetary policy.
Economics and Markets Posted by John Kranz at March 4, 2012 11:14 AM