Oct 1, 2023Liked by Johannes Loftsson, Thorsteinn Siglaugsson


“If," ["the management consultant"] said tersely, “we could for a moment move on to the subject of fiscal policy. . .”

“Fiscal policy!" whooped Ford Prefect. “Fiscal policy!"

The management consultant gave him a look that only a lungfish could have copied.

“Fiscal policy. . .” he repeated, “that is what I said.”

“How can you have money,” demanded Ford, “if none of you actually produces anything? It doesn't grow on trees you know.”

“If you would allow me to continue.. .”

Ford nodded dejectedly.

“Thank you. Since we decided a few weeks ago to adopt the leaf as legal tender, we have, of course, all become immensely rich.”

Ford stared in disbelief at the crowd who were murmuring appreciatively at this and greedily fingering the wads of leaves with which their track suits were stuffed.

“But we have also,” continued the management consultant, “run into a small inflation problem on account of the high level of leaf availability, which means that, I gather, the current going rate has something like three deciduous forests buying one ship’s peanut."

Murmurs of alarm came from the crowd. The management consultant waved them down.

“So in order to obviate this problem,” he continued, “and effectively revalue the leaf, we are about to embark on a massive defoliation campaign, and. . .er, burn down all the forests. I think you'll all agree that's a sensible move under the circumstances."

The crowd seemed a little uncertain about this for a second or two until someone pointed out how much this would increase the value of the leaves in their pockets whereupon they let out whoops of delight and gave the management consultant a standing ovation. The accountants among them looked forward to a profitable autumn aloft and it got an appreciative round from the crowd.”

― Douglas Adams, The Restaurant at the End of the Universe

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Oct 1, 2023Liked by Johannes Loftsson, Thorsteinn Siglaugsson

Each country seems to have their own explanation for their inflation. Odd that all of the nations are experiencing the same thing, isn't it?

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Oct 2, 2023·edited Oct 2, 2023Liked by Johannes Loftsson, Thorsteinn Siglaugsson

Professor Richard Werner also believes the recent inflation is caused by massive money printing the last few years, much like the inflation in the 1970's was caused by money printing, and not an oil crisis.

Interview with Professor Richard Werner about inflation and CBDC's (Ivor Cummins - July 2023)


Professor Werner's reference list https://thefatemperor.com/wp-content/uploads/2023/07/Prof-Richard-Werner-Links-to-some-key-works.pdf

Professor Werner's book: https://quantumpublishers.com/uk-cart/index.php?route=product/product&product_id=50

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Oct 2, 2023Liked by Johannes Loftsson, Thorsteinn Siglaugsson

Excellent read on a very important topic. Thanks!

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Oct 2, 2023Liked by Thorsteinn Siglaugsson

There is another factor related to pandemic management that is not often expressed, but which indeed must have had an impact on the almost global inflation we are witnessing.

In fact, I wouldn't be so sure that monetary policy is the main culprit, even if it certainly contributed.

Supply chains in our global world are extremely long and complex.

Changing radically the structure of demand for so long forced factory closures, production restructuring, etc. Such changes are not easy to undo, and it may be even be more profitable to keep a slight shortage if possible.

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Oct 2, 2023Liked by Thorsteinn Siglaugsson

I don't agree that hiking interest only has a smoothing effect on long term inflation. Although it is minor in comparison to quantitative tightening, reducing the velocity of money

does reduce the inflation rate overall.

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