The money illusion gave the appearance of economic growth, and Nixon won re-election in a landslide in 1972.
For this alone we can expect some staggering investment errors lured into energy by the money illusion that will lead to substantial capital destruction over time.
FORBES: The Irrational, Non-Economic Exuberance Underlying Hydraulic Fracturing
Looked at through the prism of today, the dollar lacks a golden anchor, and the result is a money illusion that distorts the real price of everything.
Numerous behavioural studies document people's susceptibility to money illusion.
In other words, they suffer from money illusion.
ECONOMIST: Does your company really need an annual pay round?
Worse, with consumer prices sticky in concert with commodity prices that are most sensitive to dollar-price movements, the beneficiaries of the money illusion tend to be the hard, unproductive assets of yesterday (think housing, art, rare stamps, and oil) that are least vulnerable to currency weakness, and which in fact do best when the unit of account is devalued.
The oil money creates an illusion of development, but not jobs.
In pursuance of the illusion that money can remove hard budget constraints, we moved from order to disorder.
The Illusion of Modern Money by Bill Bonner originally appeared in the Daily Reckoning.
The illusion of easy money has turned a few heads on the subcontinent.
When local projects are funded by the federal government, with its widespread tax base, we are susceptible to the illusion that the money is free.
FORBES: When What's "Good" For General Motors Is Not Good For America -- or Built To Last
Without getting into the intrinsic value debate, this is where I strongly depart from Denninger, because if we accept the thesis that all money is a universal mass illusion, then a market-based illusion can be just as valid or more valid than a State-controlled illusion.
These private agreements enable the money management industry to maintain the illusion of respectability it enjoys.
Central bankers still harbor the illusion that they can constructively guide economies by creating or extinguishing money.
Teaching them that there has to be more money coming in than going out is critical, as is defeating the illusion that credit cards are magic pieces of plastic that allow you to get things for free.
Investing has sunk to this: People are willing to pay a big premium for the privilege of getting their own money back, after fat fees, without interest apparently because it gives them the illusion of earning a high yield.
WSJ: The Intelligent Investor: Yields So High, They Can't Be for Real
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