Sunday, February 15, 2009
Keynes' Inflation Bomb
Chan Akya's 30 January 2009 Asia Times post, "Keynesian spending will likely create ... hyperinflation that could well take hold before the year is over. ... The gap between the write-offs of banks and those of insurers probably requires a study unto itself; however it suffices to say here that altering actuarial assumptions and differences in accounting logic help point to a significant pile of undeclared losses at various insurance companies as well as banks in Europe and Asia", link: http://www.atimes.com/atimes/Global_Economy/KA31Dj01.html.
"Altering actuarial assumptions", say it ain't so. I don't expect US hyperinflation, defined as inflation of at least 20% a month. However, I expect higher inflation than any "respectable" prognosticator.