Note To Dolemite: It's Not Over

[FaninAma]

There is more inflation to come. The Fed is
monetizing the debt. China has told JP Morgan
and other investment banks to quit manipulating
prices through massive derivative positions.

Gold, property and other commodities should do well
as the FED continues to print money.

[tommieharris91]

Dolemite is still around?

I agree with you though.

[Tulsa_Fireman]

How is it we screw China in the butt when this is all said and done again?

[mdklatt]

How is it we screw China in the butt when this is all said and done again?

We screwed Japan by getting them to buy all our overvalued real estate in the 80s, then the market collapsed in the early 90s and they still haven't recovered. So now we get the Chinese to buy our overvalued bonds, and when the US economy collapses they're left holding the bag. :texan:

Suck on that, China!

[GottaHavePride]

Makes me glad I don't have any money to worry about. ;)

[mdklatt]

Makes me glad I don't have any money to worry about. ;)

Makes me glad I was slow about investing more of my savings.

0.0000005% interest > negative eleventy billion% market loss

[yermom]

Makes me glad I don't have any money to worry about. ;)

word

and did you guys talk about String Theory too? i'm thinking he's about as enlightened on that topic as this one ;)

[dolemitesooner]

We often discuss physics, but string theory has not come into our discussions yet.

[OklahomaTuba]

There is more inflation to come. The Fed is
monetizing the debt. China has told JP Morgan
and other investment banks to quit manipulating
prices through massive derivative positions.

Gold, property and other commodities should do well
as the FED continues to print money.

Unless one is of the belief that we are now seeing deflation....


Bernanke can flood the world with "reserves" and indeed he has. However, he cannot force banks to lend or consumers to borrow.

Yet every day someone comes up with another convoluted theory about how inflationary this all is. It is certainly "distortionary" in that it creates problems down the road and prolongs a real recovery by keeping zombie banks alive (as happened in Japan). However, it is not (in aggregate) going to cause massive inflation because it is not spurring the creation of new debt.

Consumers and banks both are suffering from a massive hangover. Their willingness and ability to drink is gone. No matter how many pints of whiskey Bernanke sets in front of someone passed out on the floor, liquor sales will not rise.

In a debt-based economy, it is extremely difficult to produce inflation if consumers will not participate. And as noted above, demographics and attitudes strongly suggest consumers have had enough of debt and spending sprees.

Those pointing to flawed measures of money supply as proof of inflation just don't get it, and likely never will.http://globaleconomicanalysis.blogspot.com/2009/09/is-pent-up-inflation-from-fed-printing.html