Well the bank of England has been printing money for about 2 years now and it hasn't had that much of an effect in inflation and interst rates are still at 0.5%

there is however a lag time between increase of money supply and inflation equalising it out that governments hope to benefit from in the short term. It can work too.

a) this is a commonplace occurrence with modern economies in difficult financial positions
b) it's highly unlikely to turn into a Weimar situation despite the hyperventilating nonsense from certain people

What we need is a good old fashioned war. Noen of these litle theatre conflicts

Something big, state on state...

It's about time.

Right, he wil not stop before de US is a commie moslim state.
Where's my tinfoil hat. :shucks:

We'd need something to fight it with first! :haha:

As long Britain has trees to carve Hurricanes from, then you do not have to worry :D

HunterICX

:har:

No inflation without velocity.

The number of Americans on food stamps is up more than 58 percent since August 2007. http://blogs.wsj.com/economics/2010/...s-food-stamps/
Where the pricing power for food and restaurants? How can they inflate their prices if no one is there to spend money?

The "official" unemployment rate in the United States has been at 9.5 percent or above for 14 consecutive months. Wheres the money come from if there's no wage inflation pressure?

One out of every six Americans is now enrolled in at least one anti-poverty program run by the federal government. http://www.usatoday.com/news/washing...net30_ST_N.htm
How can you have higher prices if no one has money to spend?

The American Bankruptcy Institute says that there will be about 1.6 million consumer bankruptcies in 2010. http://www.abiworld.org/AM/Template....ONTENTID=62333
How do you spend money in bankruptcy?

Again, you haven't thought this through.

What was the velocity like in the early 1920s in Germany?

I know little about the theory of this, I imagine there are probably 2 models where economics want to kill each other over which campo they are in (as is true in most academic disciplines).

Well.:DL Everything Hitler done in the moment he came to power this idiot is doing right now. In addition he want to start a racial war against Whites, Blacks and so on.... People like Obama (judging by his behaviour) never faced the word "no" in his life. So that mean, sooner or later he will close the internet. The only place were he get the true meaning of the "NO" in the face. I want to see how this maniak is going to drag us away from Jerusalem. Over my dead body he will do it :yep:.

Unemployment in Weimar Germany was very very low - less than 3%. Everyone had a job, everyone had money to spend. Naturally, that lead to higher velocity.

That's.......

Trolling.

What? Speak! What are you don`t understand, the healthcare system? :cool:

Makes sense, with so many of the employment age men dead.

That was part of the solution of WW2 to FDR's depression, actually. Not hyper-spending on the part of the government for the war, but the war employing millions, and killing hundreds of thousands.

Again, I'm a physics geek, not an economist, but presumably that explains the deflationary aspect (at least partially) of the 30s in the US? High unemployment, tight monetary policy?