In my previous post on this subject for some reason that I still cannot understand, but that probably is linked to the fact of my browser being too old I place my comment in the wrong frame causing it when posted to appear blank. My apologies for that.
And bellow is what I had to say in relation to this statement made by Daytr. "Is QE inflationary? Perhaps, but maybe its just offset massive deflation"
Well, it may be" bleedin obvious" to all goldbugs, but unfortunately not to me.
Yes folks, we are having massive deflation with prices falling every day, but a deflation that we cannot see because as soon as they fall they bounce back due to the massive contra-action caused by the inflationary forces unleashed by QE.
As you suspect, this is the result of the 2nd law of gravitational economics, a branch of goldbug economics.
If you pay close attention to the post I am sure that you will find some more interesting and revealing material about the economic thought emanating from this school.
For those that don't know. There is no inflation because under a liquidity trap bonds and cash become interchangeable meaning that both are used as a store of value.
