The esteemed economist, Dr. Ira Longterm, writes for us every Friday. He still consults for his think tank, The Pipedream Group, and is working on yet another book: You Don't Need Cash If You Know The Cashier.
Dr. Longterm's White Paper - June15, 2007
Thank you, readers. More than c e n s o r e d of you contacted The Dixie Thinker's headquarters in response to my column last week which suggested selling advertising space in the roundabouts. Many of you fine folks submitted inquiries. Questions deserve answers, so my space this Friday will consist of my replies.
Q. Will you please be serious for once? I have a sincere question. Here it is: Lenin boasted that he knew how to bring down the capitalist system. His plan was to cause us to destabilize or debauch our currency. Inflation could do that. We've had it all the time for several decades, so is it gradually happening as Lenin wished? - Peter of Luchenbach, TX
A. Yes, unless we learn - citizens and leaders - the nature of inflation, and act upon the knowledge before we go off the cliff. Inflation and rising prices are not the same animal. It's about time people stop saying the former when they mean the latter. The former usually causes the latter, and you can't control the latter until you hold down the former.
Deficit spending is the culprit because it makes the government print or borrow money to pay the bills. This increase in the money supply is inflation. It is hazardous to the health of the economy.
That is as serious as I can be.
Q. Has the Federal Reserve ever been audited? - Johnny of Lake Wobegon, MN
A. No. They wouldn't dare.
Q. Is there any gold in Fort Knox? - Sally of Wachoverya, UT
A. Doubt it. Maybe fool's gold.
Q. Is the stock market rigged? - Helen of Troy, NY
A. That depends on your definition of rig.
That's it for today. Until next Friday, keep your money circulating.
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