Here's the thought for the day from NZ's Foundation for Economic Growth:
In 1988 our M3 money supply amounted to some $43,101 million. Twenty years later our M3 money supply had expanded to $201,273 million.
This is an annual compound interest rate of around 8%.
No wonder we are experiencing inflation.
Fighting inflation isn't hard -- it's easy. All you have to do is stop the Reserve Bank's printing presses.
2 comments:
Alastair Darling is on TV telling people "from the boardroom down to the shop floor" to not seek wage increases that are "above our inflationary targets."
Or in other words, 'please do what you do for less [in real terms] so we can continue to print money willy nillly and fund uneconomic projects.'
The moron thinks that inflation is a result of people wanting to be paid more. Nothing to do with printing money. Dork!
Oh great, now they have Annie Lennox on - the renowned "singer and activist." F'ing BBC.
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