With today's release of GDP and deflator numbers, one would think the "QE is inflationary" crowd would capitulate. However, intellectual dogma more often than not adheres to the rules of emotion, not reason. Just as the defenders of Greek astronomy invented more and more appendages to explain planetary movements (working within the prevailing doctrine of the day, instead of jettisoning assumptions and starting anew), so do they defend traditional (and hopelessly out of paradigm) Economic trade analysis. Exception after exception, addendum after addendum to explain events within a framework that does not include the simple observation that fiat currency issuers are by definition monopoly suppliers of their own currency.
One need only look at the map of epicycles created by ancient astronomers to see what a convoluted mess things had become...and unfortunately, William of Ockham's comments on this phenomenon would not be heard until 1700 years later...
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