[Marxism] [Pen-l] Michael Hudson: The game is over
spalmer999 at yahoo.com
Sat Jun 21 11:28:32 MDT 2008
Yes - and these are just the official numbers, which are diluted.
Anyone lucky enough to be able to bargain about their wages MUST check out
www.shadowstats.com which recalculates the cpi without the trickery introduced
over the years (make sure your union is aware of these numbers). As the site
shows, M3, a discontinued metric of the money supply (basically M2 plus some
pretty liquid assets) tracks the real cpi movements (70% correlation) -
http://www.shadowstats.com/article/232. This is exactly the behaviour we would
expect (commodities circulate money, not money commodities), and, obviously the
opposite of what the monetarists predict. This has been climbing far faster
--- Louis Proyect <lnp3 at panix.com> wrote:
> >The Fed is f*cked either way: put rates up makes recession worse;
> >cutting them increases inflation.
> NY Times, June 21, 2008
> Off the Charts
> Price Increases Put Pressure on the Fed
> By FLOYD NORRIS
> INFLATION is suddenly turning into a worry for the Federal Reserve,
> which knows that its credibility as a central bank would be damaged
> if investors concluded it was not determined to combat the recent
> rise in prices.
"I study a lot. That is one of the responsibilities of every revolutionary." Hugo Chavez.
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