Sunday, June 23, 2013

Wherein House Speaker Boehner Doesn't Understand the Difference Between Deflation and Debasement

Does House Speaker John Boehner understand that deflation and debasement are opposite things? It appears not. In an interview with Maria Bartiromo of CNBC (see clip below), he charges Fed chairman Bernanke with deflating when, in fact. Bernanke has been debasing the currency, that is, inflating the money supply by printing trillions of new dollars.

The best interpretation of Boehner's comments to Bartiromo  is that he misspoke. Here is a chart of money supply growth during the Bernanke era. No deflation here.

Boehner, though, is not all wrong in the below clip. There is a little bit of a Ron Paul impact in Boehner's statement , since Boehner appears to at least understand that the Federal Reserve is responsible for the roller coaster manipulated economy.

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