Sunday 6 December 2009

Deflation and inflation at the same time.

It seems that some of my ideas are coming together...

Following on from my last post about how the banking sector make most of their money from pseudo-investments. It fits in rather neatly with my earlier post about how you could have inflation and deflation at the same time. I suspect that the total money supply is decreasing because of the reduction in price of pseudo investments. Governments (encouraged by the banks) are attempting to expand the money supply enough to prop up the pseudo-investment market, but because people are newly reluctant to get involved in the pseudo-investments, the effect of this new money is simply to cause inflation in goods which are part of "real" trade.

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