I started this blog in June 2007 asking these questions: Are we in a massive asset bubble that will blow up in our faces ??? - ANSWERED YES ! Is western and particularly British society on the verge of social collapse??? What are the best common sense long term investment strategies to keep you rich? When will consumption/debt bubble economics end and a real savings/production economy begin ???
Friday, 16 January 2009
Classic Peter Schiff from 2006: what happened to inflation in the 90s ? It became asset bubbles that were left to grow and burst unchecked
Economists and central banks ignored the fact that inflation should have been showing up very strongly in the Chinese economy as so much money was flowing in so quickly from the US and other western countries. The Chinese government, rather than spend the money from state bank deposits and taxation in China was buy up all the US bonds that it could. Thus the dollar was protected and America could live well beyond its means and buy even more Chinese goods.
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