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European Tribune - What happens during real resource austerity?
If real resources were the driver in this crisis going on right now we would see inflation pressure.

In my opinion, we are. But

  • raw materials are a smaller fraction of GDP than they used to be
  • inflation from resource austerity is cancelled out by the deflation created by "stupidity austerity".

The fact that the central bankers haven't worked this out is one of the driving forces in the ongoing train wreck.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II
by eurogreen on Tue Jul 31st, 2012 at 06:13:53 AM EST

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