Monday, December 17, 2007


Jeffrey Tucker at the Mises website has put up a chart of PPI. Anyone who thinks we don't have inflation need only take a look at this chart.

What this chart really tells you is that the Fed is destroying the value of the US Dollar. In a hard money economy (i.e. gold standard), prices should fall as productivity increases. So not only has the Fed overcome the natural deflationary tendency in a capitalist society, they've managed to destroy the value of the existing money stock as well. Pretty impressive.

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