Austrian explains
where the inflation is and why it isn't showing up in the CPI. Food, oil, gold, commodities and producer prices are all at record highs.
"High prices seem to be the norm. The US stock and bond markets are at,
or near, all-time highs. Agricultural land in the US is at all time
highs. The Contemporary Art market in New York is booming with record
sales and high prices. The real estate markets in Manhattan and
Washington, DC, are both at all-time highs as the Austrians would
predict. That is, after all, where the money is being created, and the
place where much of it is injected into the economy."
None of those things are in the CPI.
"This doesn’t even consider what prices would be like if the Fed and
world central banks had not acted as they did. Housing prices would be
lower, commodity prices would be lower, CPI and PPI would be running
negative. Low-income families would have seen a surge in their standard
of living.
Savers would get a decent return on their savings.
"
And we'd all be better off for it.
"In other words, what the Fed chose to do ended up making the rich,
richer and the poor, poorer. If they had not embarked on the most
extreme and unorthodox
monetary policy in memory, the poor would have experienced a
relative rise in their standard of living and the rich would have
experienced a
collective decrease in their standard of living.
"
All but the super-rich bankers in New York.
"There are other major reasons why consumer prices have not risen in
tandem with the money supply in the dramatic fashion of oil, gold,
stocks and bonds. It
would seem that the inflationary and Keynesian policies followed by
the US, Europe, China, and Japan have resulted in an economic and
financial environment
where bankers are afraid to lend, entrepreneurs are afraid to
invest, and where everyone is afraid of the currencies with which they
are forced to endure.
"
So the newly counterfeited money isn't flowing into the CPI items yet.
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