Having read Brendan Brown’s book about asset price inflation, I can’t stop thinking about rising stock prices; and in Toronto, Ontario, Canada house price increases that would be impossible for me or any of my acquaintances to afford the over $3000. per month mortgage fee needed in my neighbourhood to maintain the average-priced $750000. town, or semi-detached house.
This morning a Drudge posted article reports that the former Federal Reserve Chair, Mr. Greenspan, says that real inflation is in the bond market where long-term bonds have been purchased at high prices for very low returns for a long time.
Obviously this cheap money does not encourage the average income earner to save. Spending on stocks, real estate or gold is needed to increase, or as bankers maintain, to keep up with inflation, which, paradoxically, government calculates to be scarcely 1.5% per year.