Inflation goes out of control with lowering interest rates, increasing consumer spending, Governments running deficits and printing money, rampaging unions and imposing unnecessary additional costs on business.

Our Governments and Central Banks seem to be ignoring those past and now seemingly refuted 'facts', all in the name of prioritising and ensuring our welbeing..

What's the expected lag time between instituting these practises and their effects? My guess about 6 months.

Falling asset values, increasing interest rates (Business in the US is now 22%) locked in super and investment funds , relaxation of IR conditions, increasing Union powers and a drift towards socialist and green policies, with governments and central banks racing to inflict inflation ...
Oh I forgot inflation can also be bought under control by incresing unemployment.

And with the China 'tiger' economy in serious trouble it appears the supplies of cheap goods from China might also dry up.

I don't think I've missed anything ... have I?

...the world has gone mad ... finally

What silly free-trading and monetarist nonsense. No wonder on two counts the pseudonymous nature of the author/s. 1). So they are not held to their fantastical errors and deceptions later, and 2). So they can at least express their fawning toady identities towards the in-bred imperialist system they so obviously admire.

Citing Keynes, for example, as if that name-dropping automatically and justifiably adds some "prestige" to the piece. A degenerate snob on the record as a passionate advocate for eugenics and its genocidal lunacy - even after Auschwitz became known!

So "Henry" - tell us about the derivatives bubble i.e., its origins, purposes, size and effects. Something a bit more relevant when talking about inflation perhaps? Clown.

Mil

you already have been told the derivatives bubble originated with the abolishion of Glass-Steggall, introduction of the Community Reinvestment Act, the US Congress, sub-prime loans, Presidents Carter Clinton and Bush ... in that order and of course all overseen by the New York Regional Federal Reserve.

Haven't you got it yet?

No keith - you're into some fictitious history there. If you check, you'll find that Greenspan et al got the derivatives bubble pumping not so long after the '87 crash. Every crash since has been just a smaller bubble popping WITHIN the great monstrous one comprising the derivatives trade itself. Ask one of its faithful cultists like speculator and ex-SS toady George Soros - that is, ask him when he's not off on one of his opiate binges or working out which bit of imperialist mayhem to stir with his Fabian "internationalist" and anarcho-syndicalist mates.

So get your causality right, keith. The dot.com burst, tech wreck, sub-prime, investment bank implosions, bail-out avalanches, and the more general market meltdown now - these crashes, massive as they are in isolation, are all smaller bubbles within the massive derivatives scam of funny money/super debt that goes into the QUADRILLIONS. Therefore, even the free-trading monetarists themselves cannot distort or evade that obvious fiscal fact, even by their own slavishly dull money measures and typically fraudulent standards of rubbery accountancy and Enronian book-cooking.

I can't see the relevance of mil-observer's citing of George Soros accommodation with Nazi's in Hungary in 1944-5 and Keynes belief in eugenics as a reliable mechanism for analysing Reserve Bank deliberations on using interest rates as a mechanism for controlling inflation in Australia in 2008.
Only yesterday NAB economist Alan Oster was being asked if the Labor Government had got it wrong worrying about inflation in early 2008. Clearly Thornton and The Australian are still worried about the spectre of inflation when its obvious that the real economy of Australia has slowed and growth will be 1% at best in 2009.

Thornton is way out of step, as Crikey says today "While the Australian economy grew 0.1% in the September quarter, the non-farm data means we're already going backwards"