So it looks like a long slow immiseration of the middle class, the savings and pension class. There will be consequences. Hard to predict but equally hard to say that this will all go off smoothly.
Arthur From: [email protected] [mailto:[email protected]] On Behalf Of Keith Hudson Sent: Friday, April 12, 2013 11:58 AM To: RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION; Ed Weick Subject: Re: [Futurework] Gelt Ed, But governments don't print money "recklessly"! Whoever said they did? Certainly not me. Governments print money carefully. In recent years the Fed and the BoE have been printing more than would be strictly justified (productivity alone) in order to make sure that their central bank rates are always less than inflation. For an interesting discussion of this by one of the most respected US economists, Carmen Reinhart, read the following converstion: http://www.spiegel.de/international/business/interview-with-harvard-economis t-carmen-reinhart-on-financial-repression-a-893213.html Keith At 16:30 12/04/2013, you wrote: Undoubtedly, if money were printed recklessly and in large quantities, the result would be runaway inflation. But what modern central bank is going to do reckless printing? Not likely any. Modern central banks don't behave that way. Typically, the money supply rises gradually and inflation is a gradual process, rising by two or three percentage points per year at the most. In Canada, a basket of goods purchased for $100 in 2003 would cost about $120 today. This poses no problem for people who have managed to keep their incomes growing at a rate equivaletn to inflation, but it is hard on people who rely on incomes that do not change or change only slowly. It therefore is a factor in the growing gap between the high incomed and the low incomed. Ed ----- Original Message ----- From: Arthur Cordell <mailto:[email protected]> To: 'RE-DESIGNING WORK, INCOME DISTRIBUTION,EDUCATION' <mailto:[email protected]> ; 'Keith Hudson' <mailto:[email protected]> Sent: Friday, April 12, 2013 10:52 AM Subject: Re: [Futurework] Gelt Krugman But the runaway inflation that was supposed to follow reckless money-printing - inflation that the usual suspects have been declaring imminent for four years and more - keeps not happening. Me Stay tuned. From: [email protected] [ mailto:[email protected] <mailto:[email protected]> ] On Behalf Of Ray Harrell Sent: Friday, April 12, 2013 1:36 AM To: 'Keith Hudson'; 'RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION' Subject: Re: [Futurework] Gelt http://www.nytimes.com/2013/04/12/opinion/krugman-lust-for-gold.html?hp REH From: Keith Hudson [ mailto:[email protected] <mailto:[email protected]> ] Sent: Thursday, April 11, 2013 11:27 AM To: RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION; Ray Harrell Subject: Re: [Futurework] Gelt The NYT article is all very glib and I'm sure a lot of readers will be encouraged to sell their personal gold. If there was any clear logic in the article it's to be found at the end with what Peter Schiff says. Keith At 14:29 11/04/2013, you wrote: According to the Science Channel, the Ancient Astronauts no longer need gold to run their space ships. REH http://www.nytimes.com/2013/04/11/business/gold-long-a-secure-investment-los es-its-luster.html?hp _______________________________________________ Futurework mailing list [email protected] https://lists.uwaterloo.ca/mailman/listinfo/futurework _____ _______________________________________________ Futurework mailing list [email protected] https://lists.uwaterloo.ca/mailman/listinfo/futurework _______________________________________________ Futurework mailing list [email protected] https://lists.uwaterloo.ca/mailman/listinfo/futurework
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