PART A – Examples and Comments

Our contention is that a large discretionary injection of “free money” into the channels of Demand – whether by the Fed or the Treasury – rather than as “money justified” through the channels into productive supply, [(S’-s’O’) and (S”-s”O”)], is intrinsically inflationary.  New money channeled into either the market for secondary financial assets or into the market for basic products, without that money being  “justified” by productive output, is dangerously inflationary. (Continue reading)