Victor Borge humorously explains how our language must inflate with our money, potentially important advice if current trends continue.  However, he only inflates wor

Inevitably, topics in Austrian economics are going to be coming up quite frequently on this blog, so it would serve us well to discuss areas where Austrian theory is sound and where it needs work. From my own analysis (unpublished, I'm afraid, so if you want to read it you'll have to ask) Austrian business cycle theory (ABCT) accurately approximates how Fed  activity creates business cycles.  However, we have to consider the fact that the Fed (like all central banks) were creates into order to set monetary policy which could correct for 'market failures' and business cycles.  It would be circular reasoning to assume that cycles are only caused by central bank policy, because Central banks were created in order to prevent cycles. Discounting the conspiracy theories that I, more or less, don't believe, we can assume that politicians and economists saw at least some merit in the Bank's ability to control cycles.  The most that can be said is that policy makers are overenthusiastic in their trust of the Federal reserve because: a) they can't see the long term affects of central bank policy b) somewhat more sinisterly, policy makers like the power rush they get from having control over the economy.

Inflation. While common criminals use guns and masks to steal money, our leaders use the printing press--printing ever more dollars out of thin air. It is interesting that modern dictionaries only use half of the definition of inflation. The Oxford American Dictionary of 1986 defines inflation as: "a general increase of prices and fall in the purchasing value of money." But that is only half the story of inflation. According to Websters New Twentieth Century Unabridged Dictionary of the English Language of 1957, inflation is defined as: "an increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and a rise in prices." Like other happenings--we must not look at just the symptoms, but rather the underlying cause. The result of inflation is always rising prices, but the cause is printing more money.` Put simply, "Helicopter Ben" Bernanke is not just an inflationist, he is a thief.