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Re: Project Weimar:- Eric/Fred i need you to look at this please!
I think the "money supply" is around 13 trillion. If QE2 ~ 1 trillion, it is only 8%. If it is leveraged by bank credit, that is more serious.
I think the "real inflation" will be when velocity increases because people liquidate savings accounts to buy gold, land, oil. Velocity can
increase mightily ! -
Re: Project Weimar:- Eric/Fred i need you to look at this please!
To tell you the truth, Mega, I am lost as usual. But some key-phrases in the reading were: "the Fed's duplicity", Bernanke as "the Mad Scientist", "Weimar" (referring to the post-WWI hyper-inflation in the Weimar Republic of Germany).
So, I was wondering how hyper-inflation can happen in a QE II if the Fed is following a policy of duplicity? Therefore, is this a de-flation and not an inflation? If this is going to be an inflation, then why are McMansion prices falling in California? And how can prices inflate if income is being destroyed for me and for most other people, as well? Who in America has money to-day and not just hot-air? Without credit, how can inflation accelerate? Why would banks lend if they can get a safe-return on capital by lending to the Treasury? With carrying-costs rising for homes, how can homes go up in price? With the U.S. dollar falling, why would anyone want to own U.S. real estate? Who can pay rent, especially without income? Who can be trusted at the Fed to speak his mind and tell the truth about what is really happening? What is Fed policy? Why would money stay in the U.S. when gangs roam the streets and the economy is in dis-array?
The "Mad-scientist" from Princeton will continue with his monetary experiment at the Fed, and we all will observe with keen interest.Last edited by Starving Steve; October 26, 2010, 12:22 PM.Comment
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