There is a lot of attention currently being paid to cryptocurrencies. On the one hand there are those who claim that their rise in value is actually a symptom that conventional, fiat currencies are crashing. This begs the question as to why precious metals aren’t skyrocketing, and the usual answer is that their prices are being manipulated using the futures market that keeps “paper” gold cheap while “physical” gold is growing scarce; at some point these manipulations will stop working and gold will shoot up to $10,000 an ounce. (Sounds good to me!) This also begs the question as to why, if fiat currencies are crashing, there isn’t much inflation at all. Even in countries that have been plagued with high inflation for decades, such as Russia, this is no longer a problem; there, inflation is now under 3%. There isn’t much inflation in the US either, provided you exclude from it all of the local extortion rackets: real estate, health care and education. (Armed robbery usually isn’t part of the basket of products and services used to compute inflation.) Hyperinflation is not hard to find (in Venezuela) but this is not commonly seen as a worldwide, systemic problem.
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