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	<title>Comments on: The Rise of the Beast: Inflation</title>
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	<link>http://www.citizeneconomists.com/blogs/2008/12/16/the-rise-of-the-beast-inflation/</link>
	<description>Citizen Economists is an online economics magazine written by citizen journalists. These ordinary citizens provide reports and commentary on the current events affecting the economics of the fields they work in.</description>
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		<title>By: Raymond</title>
		<link>http://www.citizeneconomists.com/blogs/2008/12/16/the-rise-of-the-beast-inflation/comment-page-1/#comment-4077</link>
		<dc:creator>Raymond</dc:creator>
		<pubDate>Fri, 19 Dec 2008 03:10:05 +0000</pubDate>
		<guid isPermaLink="false">http://citizeneconomists.com/blogs/?p=413#comment-4077</guid>
		<description>Dirk,

The game is House Of Cards where you want everyone to believe you that  adding a new deck to the stack is the solution</description>
		<content:encoded><![CDATA[<p>Dirk,</p>
<p>The game is House Of Cards where you want everyone to believe you that  adding a new deck to the stack is the solution</p>
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		<title>By: Dirk</title>
		<link>http://www.citizeneconomists.com/blogs/2008/12/16/the-rise-of-the-beast-inflation/comment-page-1/#comment-4029</link>
		<dc:creator>Dirk</dc:creator>
		<pubDate>Wed, 17 Dec 2008 23:28:52 +0000</pubDate>
		<guid isPermaLink="false">http://citizeneconomists.com/blogs/?p=413#comment-4029</guid>
		<description>By recucing interest rates and increasing the supply of money, people have incentive to spend and invest, not park, cash.  This will increase economic activity eventually, but the problem is it will take time.

I look at this situation like a bunch of people creating a human pyramid.  As it grows, some can say &quot;it&#039;s growing too big&quot;, but rather than argue their point, they just cut back on oxygen in the room.  After awhile, people get whoozy, and less likely to climb on the pyramid.  Now, someone says &quot;looks like they&#039;re getting a little whoozy, we should turn the oxygen back on&quot;.

However, someone collapses.  This causes others to collapse.  Someone says &quot;make sure the oxygen is full on!&quot;.  Now, when do the people start making their pyramid again?  And, when they don&#039;t jump right up,  someone says &quot;hey, the oxygen isn&#039;t doing the trick, perhaps we should moderate it again because when they do get up, they&#039;ll go crazy building their pyramid!&quot;.

Here&#039;s what needs to happen- jack up the oxygen, put masks on a few climbers, and then PROMISE YOU WON&quot;T TURN OFF THE OXYGEN AGAIN!.  You may have a chance to get things going then- but it will take time.  

Sadly, what may take awhile to build can crumble in an instant.  If we want to have an honest debate about why we may need to ration limited resources (maybe constraining birth rates as in China)- well then let&#039;s have that debate.  But we, the American people, have to make sure our Fed doesn&#039;t pull the rug out underneath us next time our economy reaches peak production.</description>
		<content:encoded><![CDATA[<p>By recucing interest rates and increasing the supply of money, people have incentive to spend and invest, not park, cash.  This will increase economic activity eventually, but the problem is it will take time.</p>
<p>I look at this situation like a bunch of people creating a human pyramid.  As it grows, some can say &#8220;it&#8217;s growing too big&#8221;, but rather than argue their point, they just cut back on oxygen in the room.  After awhile, people get whoozy, and less likely to climb on the pyramid.  Now, someone says &#8220;looks like they&#8217;re getting a little whoozy, we should turn the oxygen back on&#8221;.</p>
<p>However, someone collapses.  This causes others to collapse.  Someone says &#8220;make sure the oxygen is full on!&#8221;.  Now, when do the people start making their pyramid again?  And, when they don&#8217;t jump right up,  someone says &#8220;hey, the oxygen isn&#8217;t doing the trick, perhaps we should moderate it again because when they do get up, they&#8217;ll go crazy building their pyramid!&#8221;.</p>
<p>Here&#8217;s what needs to happen- jack up the oxygen, put masks on a few climbers, and then PROMISE YOU WON&#8221;T TURN OFF THE OXYGEN AGAIN!.  You may have a chance to get things going then- but it will take time.  </p>
<p>Sadly, what may take awhile to build can crumble in an instant.  If we want to have an honest debate about why we may need to ration limited resources (maybe constraining birth rates as in China)- well then let&#8217;s have that debate.  But we, the American people, have to make sure our Fed doesn&#8217;t pull the rug out underneath us next time our economy reaches peak production.</p>
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