svosavvy

Look Who's Betting on Inflation

So you are basically a supply side monetist? I am going to do the smart thing and admit I don't know. So, I am going to ride the fence until I get my head around it, riding the fence being 50/50 for and against the dollar. From what I observe the inflation mongers seem to command the air waves. Meanwhile, the US has actually found a little religion and the savings rate is increasing which strengthens the dollar, international speculative money still flows into treasuries way more than SDR's this also strengthens the dollar, consumption of imported(all) goods is way down also strengthens the dollar. Huge demand decreases in oil lend pressure to it also indirectly strengthening the dollar. A general lack of demand environment. Also, the winding down of our crapass wars will help bring in the balance sheet. I don't see inflation without demand. Who knows maybe we will have a stupendous recovery and demand will pick up and then maybe inflation. About the only inflationary thing I see here is that we printed a ton of money and gave it to the banks. I do think once we start pulling in our support to banks and money gets harder to borrow we could see some increased interest rates.