Sunday, December 2, 2012

Inflation


This is an image depicting the concept of "Inflation":















The TIRE boys.... THE TIRE!!!!

When this young woman connects the air pump to her tire here, air pressure is immediately increased inside the tire walls and the tire is said to "inflate".

This is consistent with the science of studying gas pressure.

As mass is injected into the volume of the tire, an increase in pressure can immediately be measured.

Now this is an image that disproves the monetarist metaphorical concept of "inflation":




No correlation.  And no correct analogy to real "inflation".

Prices collapsed while all time world historic levels of "money printing" was taking place.

If a concept is truly causal, we need to see "action: reaction".

Just as this young woman pictured above does not have to "wait and see" if here tire pressure is going to change "some day", if the monetarist concept of "inflation" was true, we would see an immediate effect on price levels.


4 comments:

SchittReport said...

matt, due to the number of posts you put up every day, you are creating a lot of word inflation

rsp.

y said...

stop diluting the air in that tyre, evil lady

paul said...

Here's another example of inflation (declining):

https://www.evernote.com/shard/s82/sh/d33d9344-e86f-4165-9685-96671393840c/63907b3e54606d4ae1baffc922452138

JK said...

Matt,

I like this. Interesting way to approach an issue. Keep doing what you're doing.