This is his definition from Human Action: “In theoretical investigation there is only one meaning that can rationally be attached to the expression Inflation: an increase in the quantity of money (in the broader sense of the term, so as to include fiduciary media as well), that is not offset by a corresponding increase in the need for money (again in the broader sense of the term), so that a fall in the objective exchange-value of money must occur. Again, Deflation (or Restriction, or Contraction) signifies: a diminution of the quantity of money (in the broader sense) which is not offset by a corresponding diminution of the demand for money (in the broader sense), so that an increase in the objective exchange-value of money must occur.”

There’s no controversy or confusion if you’ve the proper understanding of inflation, there’s no ‘egg on your face,’ or anything like that. Using the proper understanding you see odd boosts in the sectors of the economy where new money equivalents are being created to buy up those sectors. Tuition increases abound in higher education, where student loans boost the prices. It’s also not really possible to measure the ‘demand for money’ with precision.

Inflation channels new money into certain sectors of the economy at a higher rate than to others.

Prices don’t increase in a magical manner in lockstep with one another. If you’re using an invalid word that rests on magical thinking in its definition, you’ll be perpetually confused. I’m cribbing from this paper: http://libertarianpapers.org/articles/2009/lp-1-43.pdf

Marvelous Brain Academe Overlords – with psychopathic detachment governance over the governed. They make the decisions. Their qualified because of their Marvelous Brains, and their objective detachment. They are the actual contributors. All the rest are parasites who must be tolerated, as the MB do not wish to muster the will for the horrible logical conclusion.

Warden – cops, social workers, EMTs, soldiers, teachers who are unfortunate enough to have to interface directly with the governed GenPop, and so on.

GenPop – the rest of us. We can either be employed at whatever wages to keep us busy and to create the delusion our tiny brains contribute, creating the illusions of worth and dignity. We could either have wealth transferred to us by direct transfer without the phenomenon known as “work”, but that seems to lead us into mischief. So work in exchange for subsistence and sensations of worth and dignity will be created. This may involve a combination of work and direct transfer called “welfare”, as full protected wages would endanger the stock market, MB overlords Hedge Funds, and the rest.

Mobility in this system is by academic achievement. Hence GenPop and Warden can rise. No point in wasting the material, as noted [really] by Dr. Mengele and others.
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Yes it is.
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Proposed modification to Current Hierarchy – known as “Reaction”.

Marvelous Brain Overlords on Left Side of Office will be replaced and cast DOWN by New Right Side of Office. MB/R shall no longer have to tolerate physical proximity of GENPOPS elevated by race/gender in the office. If fortunate we’ll never see or in particular hear them ever again.

Wardens remains as are, but with less job protections in exchange for more traditional latitudes in their powers – aka THE LASH and BEATINGS of GENPOP.

GENPOP will know their place, be told it directly, and be told to stop fornicating and other vices in such an uncontrolled fashion. Their living conditions will be improved by far more work, far less direct transfer, far more Warden control. Sadly the people have been degraded to the point where this is probably necessary.
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May I suggest you start thinking about what you’ll offer the Wardens at the very least. Try and understand we come usually from GENPOP. You may also want to consider that being of lesser brains we believed in our Oaths. Ahem. And good morning.

It soaks up the debt, the debt is sterilized. It never happened.

That seems to be the plan. Basically a complicated Jubilee. But for bankers not GenPop.

I agree that it’s actually money and going somewhere, it will probably leak or pour into the system with disastrous consequences. It’s fantastically arrogant to think you could create Quadrillions to no effect because of the power of Marvelous Brains.

Your inflation can be discovered at the Supermarket. It’s not just Jim, it’s Schiff and others. If you index food alone, Big Macs or not you see it. If you shop you see it.

If you eat at the Faculty Canteen you ask: Where’s my Hyper-Inflation?

Hold the Gold.
Hold Silver.
Above all hold Lead.

HOLD IT

Arabs still kill over it. We used to.

For instance no Dignity; no Patriarchy and so on.

And Dearies you are all rather too in love with your marvelous Brains.

We must make allowances that ye are nearly all converted Progs, but be cautious.
Ye may Drift.

Handle is definitely right that the money supply contracted. That is what happens when bad debts are liquidated (at below face value). It used to happen ALL THE FREAKIN’ TIME in what people, in saner times, used to call “panics”… but now My God if that happens it’s the end of the world. People should take their lumps and whatever they have left and turn it toward more productive utility. But the forces of heaven and hell colluded in 2008 (Bush, Pelosi, Reid, and McCain, Paulson, and Bernanke) to prevent that unwinding… and new bosses same as the old bosses doing the same damn thing.

And mark my words it does not end well. But when it ends is anybody’s guess.

What if those two things just stop happening? Would that be — OK, in the larger picture? It seems to me it would be OK per se.

You mean stopping the education and healthcare bubbles? Well sure. It would be better than okay.

I think the health care bubble is fueled by two additional things on the cost side: 1) pharmaceuticals play an ever bigger role; and 2) at a diminishing cost/benefit. The biggest problem is the insurance model… which we just recently enshrined into law in the States. Insurance is supposed to be a bet you hope you lose.