raising4daughters

TIPtoeing Toward Inflation

Inflation can occur even if inflation rises to 25%. Yes, I know there's normally an inverse relationship between unemployment and inflation and I know it's dangerous to say "this time it's different." But, with the printing presses running on OT and the fed actually purchasing government debt, our leaders are debasing our currency. For domestic goods, that doesn't mean inflation since suppliers and consumers are affected equally. But.........for those of us that use oil, sneakers, TVs, toys, home electronics, and other imported goods, inflation can and will occur regardless of our domestic unemployment rate.


On Jun 03 09:24 PM Larry House wrote:

> I own a TIPS fund, but I don't see inflation flaring up in a great
> way for another couple of years. It will come, but it will come when
> the economy picks up. It is hard to have much inflation with 500,000
> per month losing jobs. Another possibility is that if the recovery
> is muted, as Bill Gross and others believe, inflation may not be
> a problem for even longer. I know it makes nice headlines to shout
> about inflation, but it is not yet at our door.