The kind of man who wants the government to adopt and enforce his ideas is always the kind of man whose ideas are idiotic. – H.L Mencken
Government is causing inflation, not mining boom
Posted by Anthony Coralluzzo on 6th August 2010 4:58pm
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There is this myth that is common among mainstream economists and economic journalists who worship at the altar of the discredited Lord Keynes, that increased activity in an industry (for example, the mining industry) causes "inflation". Wrong. Inflation, as a monetary phenomenon and hidden tax, is solely caused by governments. It is caused through the activities of the Reserve Bank to create money out of thin air, and it is also caused by de-industrialisation as a result of government "green" policy. Productive industrial activity does not have any negative effect on an economy. None.