Beyond rudimentary reasoning: two books, one on the effects of inflation and the other on the existence of God, offer thought-provoking perusal for those who savor analytical reasoning.

Age of Inflation Continued, by Hans F. Sennholz, Grove City, Pennsylvania: Libertarian Press, Inc., 2006, 45 pages, booklet. (For ordering information, see page 6.)

Hans F. Sennholz has long been one of the nation's best economists. In his 1979 book Age of Inflation, professor Sennholz examined the monetary policies of the Federal Reserve and explained how they were responsible for the economic turmoil that was then afflicting the nation. Since that time, U.S. monetary policy has continued to be the unseen hand operating the world's economic engine. And yet the distortions created by the policies pursued by the Federal Reserve have not diminished. As a result, some observers are now beginning to worry that the expansionary policies that have led to the last two decades of easy money may soon result in an unpleasant economic correction, or worse.

The time is right, then, for an update of Professor Sennholz's classic work on inflation. That update is now available in Age of Inflation Continued, a short but incisive booklet that updates the subject matter of the larger, previous work with data and analysis based on recent monetary events.

All things being equal, rising prices can come about when demand for goods and services increases. But rising prices can also result from inflation, an increase in the money supply resulting in the reduction in the value of the currency already in circulation. It is this mechanism that Sennholz describes as the engine of inflation.

The present method of debasing the U.S. dollar through inflation is done through fractional reserve banking. Banks have access to easy money from the Fed at very, very low rates. Moreover, under current rules, they are required to hold only a relatively small amount of money in reserve. They can thus make loans far in excess of the actual monies they have reserved, thus expanding the money supply. Banks, Sennholz notes, "can continue to expand their credits at multiple rates. At a five percent reserve requirement, a one-million dollar excess reserve allows a bank to extend twenty million dollars in new credits."

This phenomena expands the supply of money. Naturally, when the supply of any commodity is substantially increased, the value (or price) of that commodity must fall. When this happens to money, it then takes more money to buy a given real commodity. The price of that real commodity is, therefore, inflated.

Despite the fact that inflationary policies are the norm for the U.S. dollar at this point, runaway inflation has been avoided, as Sennholz notes, because of a number of factors, primarily the holding of dollars by foreign central banks. But, as Professor Sennholz shows, these banks may soon have reasons to divest themselves of some of these holdings, making economic turmoil a realistic possibility for the future.

Readers beware: Age of Inflation Continued is a great, brief introduction to the subject of monetary policy, but it is not necessarily an easy read. The author, a leading economist, assumes readers will already be familiar with many economic concepts and ideas. Nevertheless, the book is short and well-written and it provides a good but disquieting look at the distortions that present Fed actions are causing.

The Answer to the Greatest Question, by F. John Perna, Columbia, S.C.: The Americanist Co., 2006, 32 pages, booklet. (For ordering information, see page 6.)

In every age the question of whether or not God exists seems to become a matter of hot debate. Among those who in the past contributed substantially to this debate can be found such philosophers and theologians as Augustine of Hippo, Anselm of Canterbury, and Thomas Aquinas, to name just three from the past two millennia. The subject is no less popular and controversial today than it was in the past. In fact, due to the investigations and findings of theoretical physicists like Einstein and Hawking and many others, the debate about the existence of God may be more vital and exciting today than ever. In recent years it has attracted not only the attention of theologians and philosophers as in the past, but also the attention of mathematicians and scientists from many fields of study.

Author F. John Perna is a representative of the latter category. A chemist and a businessman, his contribution to the debate over God comes in the form of his recent booklet The Answer to the Greatest Question. The booklet consists of what the author describes as a sequence of syllogisms, or logical proofs, demonstrating the existence of a supreme, infinite being. It is a daunting task, and Perna attempts to define an unassailable answer in only 30 pages. In this he succeeds, to some extent.

Perna begins by making a series of statements which he then either declares to be true based on what he calls their existing "mathematical certainty," or otherwise declares them to be true after subjecting them to a series of logical movements. In these, he relies a great deal on observations concerning the nature of the universe. This, he declares, is infinite in volume, extent, age, and material content. And this is where readers familiar with the so-called "standard model" in physics may initially disagree.

The standard model is that of the "Big Bang" and holds that the universe as it exists at the moment was generated from a single, incomprehensibly large and energetic expansion some 15 billion years ago. This model of the universe is still a theory, but it is one that appears to be in accord with much observational evidence. It is therefore widely accepted by scientists and others. Theists, in particular, have often looked to this model as confirmation, of a sort, of the theological teaching of creation ex nihilo, or, in other words, confirmation that God created the universe from nothing.

This apparent contradiction of the standard model is, therefore, no small obstacle. Fortunately, it is only an apparent contradiction. Gradually Perna makes clear that his definition of "universe" is not restricted in time to the expansion of the presently observable universe but also includes that which predates this expansion. There is no reason not to accept this as a viable definition and if it is so accepted, Perna's assertion that the universe is infinite is true. Nevertheless, he does make some apparent missteps by misapplying current concepts as they relate to his argument.

Perna writes, for instance, that there is no "edge of the universe" because "beyond that edge we would find more of the universe." While it appears to be true that there is no edge, it is not so much true that there is more of the observable universe to be found. Looking out from Earth at the universe is not so much just about looking at some distant spatial frontier, but is instead about looking back in time at the universe's earlier age. Looking far enough back, one finds not an edge, but Planck Time, that moment in the early expansion of the universe beyond which current theoretical physics can no longer provide any explanations. So there is, in some sense, a boundary of sorts in time, if not so much in the spatial sense that Perna uses.

But this is a relatively minor point if the larger point that the universe encompasses both the currently observable universe and that which preceded it is accepted. If this is accepted, then there has been an infinite amount of time during which, Perna demonstrates, any potential event is certain to occur given infinite time. Further, given infinite time, processes set in motion will reach an infinite degree of development. This is the core of the argument. Perna notes that observation demonstrates that intelligent life is possible and he argues that "a species evolves, in an upward direction, and that this results in the continuous accumulation of additional capabilities." Given infinite time, therefore, this process will reach an infinite degree of development and from this Perna concludes that an "infinite being" must exist.

Whether one accepts the theory of evolution or not, this is a compelling argument that in its details and line of reasoning is not terribly unlike that developed by Anselm of Canterbury centuries ago. Like this famous earlier proof, Perna's is enjoyable and compelling. However, for two reasons the booklet will not be for everyone. First, those likely to read it are they who have an intrinsic interest in the subject and who are, therefore, likely to be well-versed in the content the book covers. The second reason is the book's tone. It is regrettable that this is its biggest drawback. While the author is clearly excited about the answer that he has uncovered to share with the reader, the book is written in a such a way that, at times, it comes across as condescending. For those who set that flaw aside, they will find this book to be an otherwise interesting and compelling argument.