| Subject: | Re: [socialcredit] Social Credit and Inflation--and related issues | | Date: | Sunday, February 12, 2006 23:04:53 (+1300) | | From: | W. McGunnigle <wmcgunn @.........nz>
|
| In reply to: | Message 3382 (written by Kenneth Palmerton) |
Hi Kenneth
I had not really considered that question of "inflation"
as it operated in our economy, but was intrigued by your comment that
socalled "economic experts" have never produced a really satisfactory answer
as to why it happens. I find that, on reflection, all their "explanations"
appear to be waffle with little or no substance to back up their comments.
They are very good at manipulating figures, but very short on statisdtical
analysis of those figures. They always have an excuse as to why their
forecasts are incorrect. My youngest brother has a theory that inflation has
nothing to do with money or product availablity, but is the direct result of
propaganda perpetrated by banking organisations who encourage price
increases by simply stating that inflation is increasing and prices must
increase to compensate for it. They don't have to state any reasons, but
simply create an atmosphere whereby price increases are accepted. Inflation,
i.e. increased costs for goods and services, follows on as a self-induced,
self-fullfilling prophesy. Effectively "inflation" is a mind set rather
than an economic consequence. I cannot see how this can be quantified, but I
can see the logic in his argument. It certainly explains the "stagflation"
phenomena where costs still increased despite falling industrial production
and increasing unemployment.
Bill Mc Gunnigle
----- Original Message -----
From: "Kenneth Palmerton" <kenpalmerton@cix.compulink.co.uk>
To: <socialcredit@elistas.com>
Cc: <kenpalmerton@cix.compulink.co.uk>
Sent: Friday, February 10, 2006 5:40 AM
Subject: Re: [socialcredit] Social Credit and Inflation--and related issues
> In-Reply-To: <00aa01c62844$b0b3d320$6400a8c0@cdv73pbgpo6eny>
> Hi Wallace.
>
> For a very long time I have been of the opinion that economists do NOT
> understand "inflation". Even their attempts to describe it, and offer a
> definition leave me much less than convinced of their competence.
>
> They seem to offer no logical explanation of why prices rise.
>
> I have sat with fellow directors of a manufacturing company around our
> board room table looking at each other wondering if our competitors would
> let us get away with a price rise of our products.
>
> This was not so much an exercise in maximising our profits, as trying
> desperately to cover our costs. This I believe is a common scenario,
> common to most companies in mature markets.
>
> Coming to understand later the rightness of A+B has helped, with its
> reference to purchasing power, which was the other thing we Directors
> agonised over. Would our customers have the money in their pockets when
> they chose our products ?
>
> This enlightenment came too late for me and mine I fear :-))
>
> Ken.
>
>
|
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