PRESTOPUNDIT -- "It's a team sport, baby!"

The still falling dollar has nowhere to go but down. And gold and silver reach highs not seen in years.

Let me say this very slowly, so that even journalists and economists can understand.

THE DOLLAR IS WORTH LESS AND LESS

More dollars with less value. In other words INFLATION.

It's a world economy -- always has been. And the economic fantasies of all the thousands of academic economists who use closed national economic models can't change this fact. Politicians feed off the idiocies of academic economists because it gives them coverage for politically expedient short-term policies with harmful long-term consequences. What excuses do journalists have?

And let me say it again. With record breaking productivity growth we should be benefitting from all kinds of benevolent deflation -- our dollars should be buying more and more goods which cost less and less to produce. Only massive nominal INFLATION can prevent this from happening -- and that is exactly what we have.

Posted by Greg Ransom | TrackBack