Those who rely on past relationships between the monetary base and economic activity have taken the rapid growth in thebase as portending very rapid inflation.
Mr. RICH: I would like to see people become aware that if we really want to do something about it, we have to address the trade issues and theeconomic issues that are at thebase of it.
Freed from a commodity base, central banks have been free to manipulate the very foundations of economic activity by increasing or decreasing supplies of fiat money.
While this may have worked sufficiently through the great credit crisis of 2008-2009, this common currency and shared economicbase is experiencing strains coping with fiscal problems of one (or now many) of its underlying constituent countries.
But this general belief that we must always have a manufacturing base is rather more evidence of the distinctly effective propaganda from that quarter than a description of any economic reality.