This above, from the Reserve Bank on Thursday, is very definitely not inflation. Just so you know that, you know.
I thought you should knowthat the number along the bottom scale is not really price inflation, and especially not in Hamilton or Tauranga or Queenstown.
We know it can not be inflation, you see because we know we do not have inflation in New Zealand. And we know that because the Reserve Bank always tells us so.
So we know we do not have anything to worry about, and particularly not about people borrowing newly-created money by the billion. Because that does not create any inflation. None at all – and the Reserve Bank tells us so.
Except for this inflation here of course, which the Reserve Bank tells us is something to worry about, but which they are now going to fix – bless their hearts -- just like they’ve already fixed the inflation we don’t have.
Because that’s their job, you know, to fix inflation.
Because: yes, we have no inflation. The old Reserve Bank tells me so.
And they would know. It’s their job.
Here’s a song from the Great Depression:
2 comments:
Inflation is the increase of the money supply relative to goods and services. Above chart is not a proof for inflation, but it demonstrates an asset bubble, which could be a symptom of inflation. I would see it in this case as a symptom of money running away from bad investments into the real estate as it does world wide. And it mostly comes from foreign investors fleeing their failing system, plus an intentional shortage of housing to keep prices rising.
So can anyone tell me why these figures are not included in the official "inflation" index calculations?
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