Thursday, November 19, 2009

Santelli & Wolfman On Inflation On CNBC

Check out this video.

CNBC's Rick Santelli and his colleague, a Chicago pit trader known as "Wolfman," remind us all of Friedman's quote,

"Inflation is always and everywhere a monetary phenomenon."

Leaving aside Liesman's typically idiotic comments, it's a provocative discussion, is it not?

Melissa Francis, Larry Kudlow, Wolfman and Rick Santelli "get it," i.e., they understand that inflation is a monetary phenomenon, not simply this month's CPI.

Santelli astutely points out that there is always some price disinflation in any recession, and, thus, that is not the same thing as monetary inflation.

Diane Swonk and Liesman don't "get it."

Santelli also notes out that, while the carefully-massaged CPI may not be roaring yet, imported commodities, which require dollars to purchase, and gold, are soaring. Then Kudlow chimes in near the end to note that measured US price indices are, in fact, beginning to rise faster, as reported in recent months.

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