Sunday, 14 September 2014

No banana republic price inflation yet follow up.

Since the first No banana republic price inflation post got a few thousand more views then the rest even though it was short and rather simple, I decided to follow it up with some simple pictures to illustrate it.  This will just explain the specific conundrum regarding price inflation. Not the Fed buying its own debt and all of that. Just price inflation compared to a place like Jamaica.

The first thing to understand is that purchasing power is something separate in itself. Money is not purchasing power. It is the representation of it.

Since we have established that the money isn't the purchasing power, then we have to understand what it is. It is the end result of the productivity of capital and savings where ever it is being conjured. See the next pic.

The little chart in the above pic, is the real inflation chart of Jamaica. The first few saw teeth you see in chart are bouts of price inflation of 25 to 35%.

Anyway that's price inflation narrowed down to its simplest form. I will also tie this into freegold in a future simple post.


  1. So M, has anybody mentioned the Shanghai Gold Exchange over there? They must be pretty sad over there. I don't see anything like FG on the horizon.

    1. No not much mention Grumps.

      As far as FG, Russia selling dollars to prop up the Ruble could get interesting.

  2. Great article, Thanks for your great information, the content is quiet interesting. I will be waiting for your next post.

  3. RBI identifies SBI and ICICI Bank as D-SIBs in 2016 capitalstars

  4. RIL focuses on domestic market for refined products Mahindra Group bets on branded car spare parts capitalstars


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