German consumer prices climbed at an annual rate of 0.7 percent compared to a rate of 0.4 percent in August.
Somehow, mild accelerating price inflation is viewed among mainstream economists and the news media as a positive.
Reuters commented:
The climb was "an encouraging sign for the European Central Bank that its ultra-loose monetary policy is working."Economic theory that holds consumers facing climbing prices is a good thing is positively bizarre, but it is a view that currently infects leadership at most central banks, with the possible exception of Elvira Nabiullina, Governor of the Bank of Russia.
Wait until the inflation really takes off, and it will.
-RW
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The big trouble seems to be the German banks.
ReplyDelete─ Reuters commented: The climb was "an encouraging sign for the European Central Bank that its ultra-loose monetary policy is working." ─
ReplyDeleteIf by "working" you mean the steady erosion of the purchasing power of people's money as a way to surreptitiously extract value from their savings (i.e. a tax), then yeah, sure, it is working.
─ Economic theory that holds consumers facing climbing prices is a good thing is positively bizarre ─
Not to mention cruel and out-of-touch. Of course, this 'theory' is predicated on the notion that savings are a bad thing because it reduces aggregate demand or something; never mind the fact that artificial inflation is in itself immoral and socially destructive. The Germans should be the ones to know this.
Well, this is not a "theory", it's just pseudo-intellectual distraction designed to keep marks confused while the banksters pick their pockets by straightforward use of Cantillon effect.
DeleteWe should stop calling this any kind of respectable name (like "theory") and call it for what it is: pretty obvious scam.