Here are a couple of quotes which will be of real interest to those with a real interest in real economics.
"An increase in the supply of money without any corresponding increase in the supply of commodities is called inflation;" Taken from Essentials of Economics by Faustino Ballve
And the end result?
"How long can a central bank continue an inflation? Probably as long as the people are convinced that the government, sooner or later, but certainly not too late, will stop printing money and thereby stop decreasing the value of each unit of money. When people no longer believe this, when they realize that the government will go on and on without any intention of stopping, then they begin to understand that prices tomorrow will be higher than they are today. Then they begin buying at any price, causing prices to go up to such heights that the monetary system breaks down." Taken from Economic Policy by Ludwig von Mises
Does anyone believe that such cannot happen here in Australia and the USA in the near to medium term? Were the central planners in Weimar Germany, Zimbabwe and Venezuela lesser economists than those that purport to be administering the economies of Australia and the USA?
Hope for the best and plan for the worst. And, if possible, have a chat with someone who lived through Zimbabwe's inflation.
