pictures of the build up of new cars around the world.
Too much money chasing too few goods? Is this the Inflationary effect Lauffer talked about, how companies can't produce enough goods to soak up the extra Lequidity?
I'm trying to remember how art lauffer talked about it, People don't have jobs so companies can't produce goods to soak up the money that is being pushed into the system.
Let us also remember how he said there was no recession, and how none of this was going on....
Art Lauffer, wrong about 90% of what he says... He just hopes you can't remember what he said 4 months ago. he doesn't
Saturday, February 28, 2009
Cars
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4 comments:
Laffer is a clown. As you always say, he's a general fighting the last war... the war against inflation.
We are in a deflationary spiral. The question is whether the lessons from 1929 were learned or not. It seems the world central banks are unleashing unprecedented amounts of liquidity to stave off further deflation, but is it enough? or too much?
That really is the key question. Laffer and the Inflationistas have been marginalized, they simply are not part of the conversation. If inflation does become a problem, it will not be any time soon and we will have to correct it when it comes... but that is a battle for the next phase.
I find it humorous that Laffer and Kudlow were the biggest cheerleaders for further rate cuts that fueled this maelstrom and at the time saw no problem with any of it.
I'm still trying to remember that convoluted argument for deflation.
I tell you the bad thing, For the past 3 weeks I can barely stand cnbc, it's tough to watch kudlow and fastmoney.
Careful, word on Mainstreet is still "print money" "inflation" and the dangerous one "if the problem with the country is that we are in too much debt to the chinese, how is spending 700 billion going to solve it."
I meant argument for inflation.
Nobody has a job to produce goods.
so the number of goods are down.
therefor too much money too few goods.
Deflation vs inflation. It's really important for our leaders to get this right or we could re-live the 1929 to 1933 destruction of worldwide economies.
Bottoms up? New post:
http://starwealth.blogspot.com/
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