Yes, but so what? As I keep saying, it doesn't matter how many links there are in the value chain; whether it's zero or twenty. If my carrot project results in a net increase in productivity, there is obviously no instantaneous inflation and/or bubble, by construction. Firstly, nothing is printed out of thin air, obviously. Secondly, I described a pre-condition that must hold true for your "inflationary effects" not to occur. Thirdly, it has obviously worked, otherwise debt would not exist as a financing instrument. Fourthly, my reasoning is to try to understand how people here can be so incredibly unfamiliar with basic economics. Fifthly, when did I ever promote it as a magical solution? The approach has its flaws, which I would happily point out. Finally, if anything I have said so far isn't entirely obvious, I would be happy to spend some time (at some point) to go through the whole "island A lemons" textbook economics malarkey.
Marxist hate the fact that inflation is a blessing of Capitalism, the only true means of redistributing wealth from lenders to borrowers. In their socialism, price controls just make it impossible for income redistribution. So yes, inflation is a feature of Capitalism and it is bad for those oligarchs who promote Marxism because only through that philosophy they can maintain their purchasing power and wealth. Like for instance the EU, which has an underline Marxist/Oligarch philosophy of maintaining zero inflation while unemploynment in Spain has reached 25%. Marxists hate the USD and the US because it spoils the party of their bosses, the oligarchs, and with its printing of money raises inflation. I know, few will understand me and I also know the covert Marxists in these threads won't like I blew their cover. I summarize: Marxists and Oligarchs are the same team and their enemy is inflation, which manifests in capitalism.
No joke. Marxist political parties all over Europe are financed by very wealthy people who obviously see a nominal inflation rate as a threat to their money. The EU and Euro was conceived by them and the ECB with the "zero inflation policy" is their weapon that exercizes Marxist policies.
Erm, the ECB's inflation target is actually 2% (specifically, price stability means ensuring that EU HICP YoY is not above target in the medium term).
u r talking abt the efficient allocation of resources which is different from increasing the money supply, btw the US economy is being managed by the ultimate armchair economist, besides what u proposed has already been attempted, remember corn?
so bunny, now u r onto bureaucrats carrots, either u don't live in the US nor in the ECB, thats why u don't shop there, 2% lol
It would be difficult, if not impossible, for me to live in the ECB, seeing as how ECB is the European Central Bank. But you definitely deserve a prize of some sort for your amazing deductive abilities.