2009年7月6日月曜日

The Creature from Jekyll Island (4)

In reality prices are not rising at all

This newly created money goes out into the economy and it dilutes down the value of the dollars that were already out there. It's like pouring water into a pot of soup, it dilutes the soup. So by throwing more and more money into the economic soup out there the money gets weaker and weaker and weaker and we have the phenomenon called inflation which is appearance of rising prices. I emphasis the word "appearance" because in reality prices are not rising at all.

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