GaryBG

Don't Expect Hyperinflation for U.S. Economy

If debt in this country continues to be destroyed thru losses on mortgages, business and personal bankruptcies by the score, credit card write offs, diminished asset values which require balance sheets to either be replenished with additional capital or a much smaller entity, doesn't the issuance of $billions of Fed dollars replenish some of the destroyed dollars? To what degree will they have to overshoot to cause massive inflation? Jeremy Grantham makes an argument that $10 Trillion+ of debt will have to be written off over the next 6 years. Were the Fed not supplying a gigantic amount of dollars, would be not be destroyed by a lack of dollars?