Monday, April 25, 2011

Closing Walls

"We seem to be made to suffer. It's our lot in life."
--C3PO (Star Wars)

Remember that trash compactor scene from Star Wars? The federal government at large, well reflected in scene by lots of idle refuse, is on the verge of being crushed by two converging walls. One wall is the deflationary force of debt and leverage. The other wall is the inflationary force of money printing and rising prices.
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1 comment:

dgeorge12358 said...

Rather than a problem to be dreaded and combatted, falling prices through increased production is a wonderful long-run tendency of untrammelled capitalism. The trend of the Industrial Revolution in the West was falling prices, which spread an increased standard of living to every person; falling costs, which maintained general profitability of business; and stable monetary wage rates—which reflected steadily increasing real wages in terms of purchasing power. This is a process to be hailed and welcomed rather than to be stamped out.
~Murray Rothbard

April 25, 2011 at 8:52 PM

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