Wednesday, July 15, 2009

Inflation.

2 comments:

  1. inflation is very likely, but hyper inflation is unlikely (tho possible). i work for a very big financial services company and so i get to see economists from many companies and most of them talk about inflation, but few talk about hyper inflation being other than an a minor possibility

    q

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  2. Well that's likely because the FED is already talking about tightening the money supply later on.

    Claiming to "stimulate" the economy and keep prices "under control" e.g. create an environment that generates lies about scarcity - and then take money out of the market. Deflating the supply-after the prices have/are adjusting to the prior-inflation, generating an environment where prices have readjusted to the inflation and then there isn't enough money circulating. Seems to me like their will be even more harm done through deflation. We've pretty much already hyper inflated if you take into account that less than 50% of our monetary base is in circulation.

    :)

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