Ignoring the facts

Bumped into Cyril from the Free Market Foundation at Wits University yesterday. We had a brief discussion on Hayek and Keynes before our respective presentations began.

He started down the “hyperinflation here we come argument” when I asked whether he knew that US wages had declined last month. He asked “nominal?” with a genuine look of surprise on his face.

Becase last month (the prior release from the BLS) showed average wages declining by 0.1pc. Amazing how those that talk most about hyperinflation don’t know the facts.

Of course, today’s release of wage data shows a 0.4pc increase in average hourly wages. Not as dramatic a point as deflationary wages, but still as far from hyperinflation.