"Dr. Richebacher persuasively argued that rising consumer price inflation was the least problematic inflationary manifestation, as it could be rectified by determined (Volcker-style) monetary tightening. Presciently, Richebacher viewed asset inflation and Bubbles as the much more dangerous inflationary strain - too easily tolerated, accommodated or even propagated.
It’s no coincidence
that periods of low consumer price inflation preceded the Great Depression and
the bursting of the Japanese Bubble. I would further note that consumer price
inflation was relatively contained prior to the bursting of the tech and
mortgage finance Bubbles. But to claim this dynamic was caused by tight monetary
policy is flawed thinking. It was just the opposite.
I would argue that
major monetary inflations, along with attendant investment and asset Bubbles,
tend to boost the supply of goods and services. Myriad outlets arise that
readily absorb inflated spending levels, working to avail the system of a rapid
increase in aggregate consumer prices. Booming asset markets become magnets for
inflationary monetary flows, while a boom-time surge in more upscale and luxury
spending patterns also works to restrain general price inflation. Moreover, a
boom in trade and international flows ensures strong capital investment and an
increased supply of inexpensive imports (think China, Asia and technology). "
http://www.prudentbear.com/2013/07/inflationphobia.html#more Doug Noland
The FED has NOT been able to create INFLATION, and the money they create each month goes into RISKY ASSETS, created myriad bubbles more dangerous than before returning NO longer benefits.
SO a FEW MEN determine the fate of everyone, f'ing it all up.....the rich got wealthier, the poor got poorer, all under the leadership of a popular Democrat, imagine the hypocrisy?