posted on Mar, 9 2013 @ 09:40 PM
reply to post by Trueman
A weaker currency, record low borrowing costs and $23 billion in tax cuts failed to kick-start the economy last year. Instead, the measures helped
fuel inflation that is running faster than in Mexico, Colombia or Chile and approaching the 6.5 percent upper limit of the central bank’s target
This is some of the most confused, cause-and-effect horsecrap I've ever read from a reputable news site.
Strip away record-low borrowing and the tax cuts and it may be equivalently stated, "inflation has fueled inflation." Really? Is that some sort of
new and isolated phenomenon? Beam me up!
Add "record-low borrowing" and your explanation for a "weaker currency" is staring you straight in the face. Moreover, tax cuts or tax increases
contribute nothing to monetary inflation nor price inflation. Unless tax payers are creating their own reals and adding to the existing stock of
money, tax increases or tax decreases do not "help fuel price inflation."
Innumerable apologies for my ranting. The story has activated my nuclear button.