An Expanding Monetary Base & Inflation…

don’t always follow each other. I know it used to be that way but these are times without precedent. People keep talking about in recession (booooo!) or out of recession (yaaaay!) as if they’re bad or good things but really nowadays they’re irrelevant things. It’s as if money has taken a life of its own, spun off into some cyberFrankenverse where old rules simply don’t apply any longer. All the quantitative easing the¬†governments are indulging in is expanding the monetary base but not this one, not the one that you live in and I live in. It simply adds volume to the monster in cyberspace. That doesn’t affect us here in the real world. Very few people seem to get that this is an entirely new game in some regards. We never had this cyber aspect before, there wasn’t the facility to create electronic money. There may be inflation at some future date but it’s by no means inevitable.

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