Although some of the goods and services provided by government are essential, it is not essential that they be provided by government. On the contrary, the private market place, operating on the principle of voluntary cooperation and exchange, is not only able to provide these goods and services, but can provide them more efficiently and for less money. – Sy Leon, None of the Above: Why Non-Voters Are America's Political Majority
Today's Chart shows the money supply vs the housing price index over the last ten years:
If I get this right, the money supply needs to grow with the population so that the free flow of capital can be efficiently enabled. Loosely translated, the banks should have enough money to loan to meet the demand, so that consumers and businesses can reach their maximum potential.
Okay, so now, there appears to be enough money out there to buy every house on the market. Can we stop the printing press now?
1 comment:
Frank Shostak has a good article today at the Mises site regarding the true essence of inflation.
In it, he makes the distinction that price inflation is only a symptom. The real culprit is the money supply.
http://mises.org/daily/5953/Is-Inflation-about-General-Increases-in-Prices
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