I don't think that is true, however if you could show some data supporting that assertion, i might be able to accept it as fact. The few studies i have seen, however, claim that the costs incurred due to illegal immigrants is virtually balanced by the benefits, i.e., lower prices, and that it's essentially a wash.
We have had this discussion ad nauseum on ET. Some expressed their conviction that deflation and recession was of greater concern than inflation, others maintain that inflation is the greater risk. I fall into the latter camp because it is unusual for a nation with heavy debt not to inflate. Usually the debt is monetized and that seems to be precisely the course the US is following. Those who have no debt will suffer in comparison to those with heavy debt. In this environment it pays to borrow. I expect fairly severe inflation, and down the road, higher interest rates.
Look at f'ing northern rock. That is monetization pure and simple. Bernake is correct he can stop deflation whenever he wants, but like the idiot he is unwilling to lean on the markets whatsoever. two years and he is done.
I have been saying this for decades and the test of time has always proven it to be true: "eliminate the Fed's ability to cut interest rates and simply have the overnight lending rate auto adjust itself (electronically) to mimic the exact value of the yield on the benchmark 10 year Treasury Note." That would create a perfect equilibrium between 1: the bond market, 2: the stock market, 3: the housing market, 4: and inflation. "Bubbles in those markets would be a thing of the past."
It seems it would be unusual for the money supply to increase by much without prices increasing, however technically possible that might be. It is more common for the two types of inflation to accompany each other, is it not?
There will be no inflation because there will be massive inflation. What you say? Think about it. What's going up? Food and energy. The 2 things even the poor can't avoid. Of course, given they don't count much in the number, the FED can lower rates to zero if they want and there will be no stated inflation problems because after buying food and gas most people won't have any money left to spend on other items. Therefore, most of the CPI index will see deflation while a small portion will see inflation. Net result = no inflation. Prety simple if you don't over think it.
It's a sad thing when a nation of immigrants forgets it's roots, and the sons of the immigrants blame immigrants for the problems of their nation. This can only come from the worse kind of ignorance; ignorance of one's own roots. Forgetting that perhaps if one's fathers had stayed back home somewhere in Europe, your country would be a much wiser place today.
<object width="425" height="355"><param name="movie" value="http://www.youtube.com/v/_4IsnLGILjY&rel=1"></param><param name="wmode" value="transparent"></param><embed src="http://www.youtube.com/v/_4IsnLGILjY&rel=1" type="application/x-shockwave-flash" wmode="transparent" width="425" height="355"></embed></object> Great video on the disbursement the Bush/Bernanke economic stimulus plan. I wonder if it will have any negative consequences.. such as inflation.