Tuesday, August 23, 2011

Re-inflate And Accumulate

Dmitry Orlov :

if the real physical economy is collapsing, unemployment keeps going up, more and more people are excluded from the economy all the time, then that gives you the ability to print money because the two things balance out. So you have this deflationary trend, of the economy collapsing, of property values and various asset prices falling, and at the same time you can re-inflate the economy by printing money. And that money ends up in the pockets of very few people who then use it to buy up physical goods. So that’s really the trend, we see this concentration of paper capital.

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