lance sjogren

Prepare Yourself for the Inflation Invasion

Sethbru, I agree that the money supply increase the Fed has been doing up to now is largely just to fill back up the black hole of collapsed debt, and thus will not create inflation.

However, the US is running a structural deficit of at least 1 trillion per year, and I believe that is not going to be reduced in coming years, the pressures to further INCREASE the deficit are far too powerful.

And, I sincerely doubt there is going to be a market for that annual 1+ trillion in Treasury Bonds that will be issued to fund that debt. So I believe the Fed is going to print new money to buy them up.

And that will be extremely inflationary.