I see commodity prices following the increase in the money supply. This makes sense to me, since most of the increase is being captured by wealthy individuals, banks, hedge-funds, etc. They use it to chase gambling profits around the globe rather which doesn't really drive up consumer prices. If the money supply increases were going to the masses, we might use it to drive up prices but that is so 1970's. I think we're in a inequality trap.
tnb
No comments:
Post a Comment