Santelli goes nuts again

Bravo!

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Deflation, 46 pages, quick read

http://mises.org/books/deflationandliberty.pdf

DEFLATION AND LIBERTY

JÖRG GUIDO HÜLSMANN

"...It is highly significant that the authors of the 1931
Macmillan Report, which analyzed the worldwide
financial crisis of the time, recognized and emphasized
that deflation was foremost a political problem. They
clearly saw that deflation brings down the politicoeconomic
establishment, which thrives on inflation
and debts, and that it therefore brings about some circulation
of the elites. The late Lord Keynes and his coauthors—
among them several leaders of the London
banking industry, and of the British cooperative and
labor-union movements—were of course convinced
that their country could not do without them...."

"...But there is also another point of view that merits
consideration and which is in fact decisive for our
problem. It results from the fact that, in practice, there
are at any point in time two, and only two, fundamental
options for monetary policy. The first option is to
increase the quantity of paper money. The second
option is not to increase the paper money supply. Now
the question is how well each of these options harmonizes
with the basic principles on which a free society
is built..."

"IN CONCLUSION LET US restate the main points: Deflation
is far from being inherently bad. Quite to the contrary,
it fulfills the very important social function of cleansing
the economy and the body politic from all sorts of
parasites that have thrived on the previous inflation. In
a word: the dangers of deflation are chimerical, but its
charms are very real. There is absolutely no reason to
be concerned about the economic effects of deflation—
unless one equates the welfare of the nation
with the welfare of its false elites. There are by contrast
many reasons to be concerned about both the
economic and political consequences of the only alternative
to deflation, namely, re-inflation—which is of
course nothing but inflation pure and simple..."

Regards, Don

Damn... Thank you for that

Damn... Thank you for that breath of fresh air. I am going to go watch the Santelli rant of the year now, at full volume, while sipping some Brandy.