Inflation? What inflation?

[Roughneck]

Interesting take on why we haven't seen monetary inflation yet.

http://www.webofdebt.com/articles/qu...ive_easing.php

[ThePythonicCow]

Re: Inflation? What inflation?

Interesting take on why we haven't seen monetary inflation yet.

http://www.webofdebt.com/articles/qu...ive_easing.php

Debt money is like a narcotic drug. It's addictive, and unhealthy.

Our drug king pins, aka the Banksters, have a problem. Their primary customer, America, is dying off from too much debt drug. So they have pulled strings in our government, over which they already have substantial corrupt control, to take up the slack in their debt business on our behalf.

Now Treasury and various zombie businesses (Fannie, Freddie, big banks, AIG, GM, ...) are main-line connected to debt drug firehoses and consuming the debt money no one else will buy. More business for the debt sellers. More interest earned on nothing of any account other than having stole the power to create money in 1913.

We've already spent our money and our future income and our kids money on debt money interest. Now we're spending the rest of our kids future income.

Whether it's inflation, deflation or one of iTulips variants doesn't matter much to me, except as a matter of navigating the rapids. Similarly, whether I am so ill from a heroin addition that it no longer gives me a good feeling, or whether I am too poor to get enough and so getting partial withdrawal, or whether I get "lucky" and score another hit and enjoy the rush ... all this is as about as meaningful as who won some TV contestant show.

Only running the drug dealers out of town ... off this planet ... matters now. Only me and my fellow 300 million Americans (and apparently a few hundred million more suckers ... debt drug addicts ... abroad) coming clean and ridding our financial world of these b*stards matters.

The latest Obama administration proposal to give the Fed Reserve yet more powers is a flippin freakin outrage. The Fed is the debt money drug King Pin. They need to be abolished (and if any of them have so much as an outstanding parking ticket from 1972, locked up!), not granted more unlimited power than any actual government body, much less a private body of multi-trillion dollar thieves, has ever possessed in a "free" country.

[LargoWinch]

Re: Inflation? What inflation?

Debt money is like a narcotic drug. It's addictive, and unhealthy.

Our drug king pins, aka the Banksters, have a problem. Their primary customer, America, is dying off from too much debt drug. So they have pulled strings in our government, over which they already have substantial corrupt control, to take up the slack in their debt business on our behalf.

Now Treasury and various zombie businesses (Fannie, Freddie, big banks, AIG, GM, ...) are main-line connected to debt drug firehoses and consuming the debt money no one else will buy. More business for the debt sellers. More interest earned on nothing of any account other than having stole the power to create money in 1913.

We've already spent our money and our future income and our kids money on debt money interest. Now we're spending the rest of our kids future income.

Whether it's inflation, deflation or one of iTulips variants doesn't matter much to me, except as a matter of navigating the rapids. Similarly, whether I am so ill from a heroin addition that it no longer gives me a good feeling, or whether I am too poor to get enough and so getting partial withdrawal, or whether I get "lucky" and score another hit and enjoy the rush ... all this is as about as meaningful as who won some TV contestant show.

Only running the drug dealers out of town ... off this planet ... matters now. Only me and my fellow 300 million Americans (and apparently a few hundred million more suckers ... debt drug addicts ... abroad) coming clean and ridding our financial world of these b*stards matters.

The latest Obama administration proposal to give the Fed Reserve yet more powers is a flippin freakin outrage. The Fed is the debt money drug King Pin. They need to be abolished (and if any of them have so much as an outstanding parking ticket from 1972, locked up!), not granted more unlimited power than any actual government body, much less a private body of multi-trillion dollar thieves [sic], has ever possessed in a "free" country.

Well said my friend.

[icm63]

Re: Inflation? What inflation?

Why aren't USA people marching in the street...(IRAN citizens are a better example)...after all your getting screwed just as bad ???

[D-Mack]

Re: Inflation? What inflation?

Ellen Brown has some interesting articles like this one on Weimar


The Weimar Hyperinflation? Could it Happen Again?

[kartius919]

Re: Inflation? What inflation?

She never defines deflation, but it seems eerily similar to Mish's definition of deflation as contraction of money supply plus credit. Credit is on a decline faster than the expansion of the money supply ergo deflation is the likely outcome.

[Roughneck]

Re: Inflation? What inflation?

For the record, I think she's right as to why we haven't seen massive monetary inflation even though the fed has flooded the system with money.It's just plugging a huge black hole. However, I do believe that our government debt and the weakness of the dollar will cause inflation down the road.we are already seeing that in oil and commodities.Oil inventories are up and demand is still weak but oil is going higher because the dollar is on the slide. Plus as Janzen points out a long term depression may drive many producers out of business causing shortages of consumer goods down the road. I think in the 70's it was caused stagflation. Does Obama remind anyone of Jimmy Carter? Break out the platform shoes and the polyester

[cjppjc]

Re: Inflation? What inflation?

For the record, I think she's right as to why we haven't seen massive monetary inflation even though the fed has flooded the system with money.It's just plugging a huge black hole. However, I do believe that our government debt and the weakness of the dollar will cause inflation down the road.we are already seeing that in oil and commodities.Oil inventories are up and demand is still weak but oil is going higher because the dollar is on the slide. Plus as Janzen points out a long term depression may drive many producers out of business causing shortages of consumer goods down the road. I think in the 70's it was caused stagflation. Does Obama remind anyone of Jimmy Carter? Break out the platform shoes and the polyester

I couldn't resist.:eek:

http://www.youtube.com/watch?v=AakoaWrJCrs

[bart]

Re: Inflation? What inflation?

The Great Depression parallels... busted

[Ghent12]

Re: Inflation? What inflation?

For the record, I think she's right as to why we haven't seen massive monetary inflation even though the fed has flooded the system with money.It's just plugging a huge black hole. However, I do believe that our government debt and the weakness of the dollar will cause inflation down the road.we are already seeing that in oil and commodities.Oil inventories are up and demand is still weak but oil is going higher because the dollar is on the slide. Plus as Janzen points out a long term depression may drive many producers out of business causing shortages of consumer goods down the road. I think in the 70's it was caused stagflation. Does Obama remind anyone of Jimmy Carter? Break out the platform shoes and the polyester

If what you say is true, then the logical conclusion is that "quantitative easing" is the wrong approach regardless of whether production drops or not, according to my as-yet unedumacated kind of logic.

The figurative and literal printing press fills the huge black hole for now, but what happens afterwards? What happens when "the banks start lending again" and the debt that once filled the void is now back in play, along with all the recently-eased-into-existance dollars? Alternatively, assuming that the banks never "start lending again" as before, won't all these newly created dollars perpetuate the phony economy longer while delaying the necessary fundamental restructuring that would otherwise occur?

One possible outcome of "quantitative easing" appears to be (hyper)inflation leading to a Banana Republic, while another possible outcome appears to lead directly to Great Depression II.

Would a third possible outcome be postponement of restructing into a production economy long enough to inflate a new bubble or system of bubbles, such as "green" energy?

[Jim Nickerson]

Re: Inflation? What inflation?

http://www.nytimes.com/2009/06/21/bu...FUAdrlA8zmFDXQ

Blinder wrote "First, the clear and present danger, both now and for the next year or two, is not inflation but deflation. Using the 12-month change in the Consumer Price Index as the measure, inflation has now been negative for three consecutive months."

[Jim Nickerson]

Re: Inflation? What inflation?

Simon Johnson wrote: “4. The consensus from conventional macroeconomics is that there can’t be significant inflation with unemployment so high, and the Fed will not tighten before late 2010. The financial markets beg to differ - presumably worrying, in part, about easy credit leading to dollar depreciation, higher import prices, and potential commodity price inflation worldwide. In all recent showdowns with standard macro models recently, the markets’ view of reality has prevailed. My advice: pay close attention to oil prices.

http://baselinescenario.com/2009/06/...9%3a21%3a00%27

[Jim Nickerson]

Re: Inflation? What inflation?

Airtime: Fri. Jun. 19 2009 | 1:48 PM ET
Why the United States has a good chance of hyperinflation, with Marc Faber, "The Gloom, Boom, & Doom Report" editor and CNBC's Erin Burnett.

http://www.cnbc.com/id/15840232?video=1158418047&play=1 5:17 Min,

Faber closed with saying real estate was not a place to be to "hide" from the coming inflation, but that he would rather be in real estate than US 30-year bonds. Not a bad video, not a lot of stupidity on the part of the interviewer.

Interestingly, to me, in last week's Barron's Faber in his picks for the next year (as I interpreted that parameter) http://online.barrons.com/article/SB...599607023.html suggested shorting the 10-year Treasury note when its yield falls to 2.8% to 3% (Friday it closed at 3.789%). So I interpret that he, at least a week or two ago, foresaw a period of further disinflation/deflation if it is correct that bonds do well during deflation--if such improvement in bond prices can be sorted from a "flight to safety" increase in prices.

[Roughneck]

Re: Inflation? What inflation?

n S. Blinder is a professor of economics and public affairs at Princeton and former vice chairman of the Federal Reserve. He has advised many Democratic politicians.

That's two strikes against him in my book I have looked hard at the tips spread. My feeling is the numbers were skewed by the rush to treasuries due to the crisis. And since most investors were fearing deflation the numbers only reflected investor sentiment. When people start exiting treasuries lets see what happens.

[Starving Steve]

Re: Inflation? What inflation?

Ellen Brown has some interesting articles like this one on Weimar


The Weimar Hyperinflation? Could it Happen Again?

I am not an economist by education, but it seems to me that blaming currency speculators for hyper-inflation is like blaming someone who adds a zero to a written price for hyper-inflation. The real cause of hyper-inflation is the central bank keeping interest rates below the rate of inflation and introducing too much paper money into general circulation. Then the currency speculators can speculate and profit.

If interest rates would be kept above the rate of inflation, the cost of money would make lending of money prohibitively expensive. The money supply would therefore be restricted, and prices could not be raised. Currency speculators would end-up with losses.

Or think of it this way: If a central bank restricted the supply of money, anyone who raised prices would not be able to sell goods simply because there would be no money around to facilitate the sale of goods.

With the putz from Princeton (Bernanke) continuing to print money, the ultimate inflation in America is inevitable.... It's like pouring gasoline onto a dry forest and saying the forest is fine. One can do the pouring for a while, but just for a while.

The putz from Princeton should have studied the hyper-inflations in Latin America for his Ph.D. instead of the policies of the Federal Reserve Bank in America during the Depression. America and the world would have been better-off.