“Inflation is central bank manipulation of interest rates to something other than that which consumers and producers would find for themselves. If the central bank prints money to buy bonds, we get a lower interest rate. Consumers are prompted to save less and spend today; producers are fooled into thinking there are more funds for future production than will be demanded. When the mismatch is discovered, we suffer the inevitable correction of a central bank-inspired boom/bust”.
Extract from Neil Emerick’s letter which appeared in BDLive today – read LETTER: We should be getting ready for bust.