Saturday, September 27, 2014

Price Increases Lag Money Printing

Sometimes I never leave
But sometimes I would
Sometimes I stay too long
Sometimes I would
--The Motels

Increase in price of goods and services, what is today's semantically challenged world is commonly called 'inflation,' is a lagging indicator. Money is printed and makes its way toward various categories of prices--some before others.

Once price increases materialize, the toothpaste is out of the tube. The process cannot easily or quickly be reversed.

Policymakers and their minions, it seems, falsely believe otherwise.

1 comment:

dgeorge12358 said...

Annual inflation change +1.656% as of 9/13/14
~pricestats.com