Stimulus will mean inflation

Why 'Stimulus' Will Mean Inflation (WSJ):

Inflation is the product of the demand for money as well as of the supply. And if the Fed finances federal deficits in a moribund economy, it can create more money than the economy can use. The result is "stagflation," a term coined to describe the 1970s experience. As the global economy slows and Congress relies more on the Fed to finance a huge deficit, there is a very real danger of a return of stagflation. I wonder why no one in Congress or the Obama administration has thought of that as a potential consequence of their stimulus package.

monetary inflation hockey stick

From GaryNorth.com

inflation in Zimbabwe to come to a screeching halt

Zimbabwe opens up to multiple currencies (Reuters):

Zimbabweans will be allowed to conduct business in multiple currencies, alongside the Zimbabwean dollar, in an attempt to tackle soaring inflation, acting Finance Minister Patrick Chinamasa said on Thursday.

"In the hyper-inflationary environment characterizing the economy, our people are now using multiple currencies alongside the Zimbabwean dollar. These include the (South African) rand, U.S. dollar, Botswana pula, euro and British pound among others," he said in a budget speech.

central banks and bubbles

Monetary Lessons from America's Past

printing inflation

Zimbabwe to print first $100 trillion note:

The new 100 trillion dollar bill would be worth about $300 in U.S. currency. A loaf of bread in Zimbabwe now costs about 300 billion Zimbabwean dollars -- and like most commodities, the price increases every day.

constant lying

This is what 'monetary management' really amounts to. In practice it's merely a high-sounding euphemism for continuous currency debasement. It consists in constant lying in order to support constant swindling. Instead of automatic currencies based on gold, people are forced to take 'managed' currencies based on guile. Instead of precious metal they hold paper promises whose value falls for every bureaucratic win. And they are suavely asured that only antiquated minds dream of returning to truth, and honesty, and solvency, in gold.

Henry hazlitt

What You Should Know About Inflation

"What You Should Know About Inflation" by Henry Hazlitt:

Inflation, to sum up, is the increase in the volume of money and bank credit in relation to the volume of goods. It is harmful because it depreciates the value of the monetary unit, raises everybody's cost of living, imposes what is in effect a tax on the poorest (without exemptions) at as high a rate as the tax on the richest, wipes out the value of past savings, discourages future savings, redistributes wealth and income wantonly, encourages and rewards speculation and gambling at the expense of thrift and work, undermines confidence in the justice of a free enterprise system, and corrupts public and private morals.

Inflation, always and everywhere, is primarily caused by an increase in the supply of money and credit. In fact, inflation is the increase in the supply of money and credit.

.... inflation must always end in a crisis and a slump, and that worse than the slump itself may be the public delusion that the slump has been caused, not by the previous inflation, but by the inherent defects of "capitalism."

Lack of bank note paper threatens Zimbabwe economy

"It has come to this: Zimbabwe is about to run out of the paper to print money on."