Asbytec

The Inflation / Deflation Forces Battles On

I am of the camp the Fed cannot inflate enough. It can and has increased Fed power money, but that is merely a fraction (was less than 8%) of total global liquidity. That's the money the Fed can directly affect.

If lending picks up again, we'll see liquidity sky rocket. But until then, we just cannot expect to run an economy of the 90's on the liquidity levels of today.

This also speaks to dollar strength, in my view. Less dollars are trying to close a reduced amount of global deals. It's a tricky balance.