Thursday, January 17, 2013

Nuclear and Monetary Meltdowns

The central planners at the government and central bank think they can print some money and control the inflation rate like a thermostat on a room.  You want things a bit hotter you turn it up a bit, a bit colder you turn it down a bit.  The reality is it is like a Nuclear Reactor.  If you do things wrong there are feedback loops such that events spiral out of control.   Hyperinflation is how it spirals out of control.  Most people don't really understand hyperinflation, so when it comes most people are surprised.   Having people in government and central banks who do not understand hyperinflation controlling your fiscal and monetary policy is like having people who do not under understand nuclear reactors controlling a nuclear power plant.  Things are just bound to end badly.

I saw this analogy in a video.

1 comment:

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