Inflation.Thank you so much for the article "Is Inflation Back?" (June 28 issue) by John F. McManus. Inflation is a "process," wrote John Maynard Keynes Noun 1. John Maynard Keynes - English economist who advocated the use of government monetary and fiscal policy to maintain full employment without inflation (1883-1946) Keynes in 1920. "which not one man in a million is able to diagnose diagnose /di·ag·nose/ (di´ag-nos) to identify or recognize a disease. di·ag·nose v. 1. To distinguish or identify a disease by diagnosis. 2. ." Keynes also made us aware of the secrecy involved. He wrote: "By a continuing process of inflation, governments can confiscate To expropriate private property for public use without compensating the owner under the authority of the Police Power of the government. To seize property. When property is confiscated it is transferred from private to public use, usually for reasons such as , secretly and unobserved, an important part of the wealth of their citizens." Mr. McManus (referring back to a June 30, 2003 article) correctly informed us that "the money supply has risen $67.6 billion, or 9.6 percent, since one year ago." By coincidence, that $67 billion figure is the same as the $67 billion increase in the money supply in the weekly report released on June 24, 2004 by the board of governors of the Federal Reserve System Board of Governors of the Federal Reserve System The managing body of the Federal Reserve System, which sets policies on bank practices and the money supply. . McManus' $67 billion increase was for one whole year, but the $67.4 billion increase reported by the Fed on June 24, 2004 was for one whole week! For an interesting story of how the Federal Reserve System got started, one should read chapter 21 of From Farm Boy to Financier, by Frank A. Vanderlip. WESTON I. VAN BUREN Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , California |
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