Crocodilian

Gold and Oil: A Long Term Play on the Economy

Robert Frost, the banker? That's a fine image . . .

More to the point of your piece, I'll reiterate this perplexity: If inflation is in the cards, why is it that we see deflation? Let me pose a hypothetical: Perhaps the vast sums of money being poured into the system have to some extent already been offset ("pre-sterilized") by the massive losses incurred by households and businesses this year.

Demand has fallen off a cliff, as have household assets. Whatever amounts of money are entering the system through the actions of the Treasury and the Federal Reserve, they are unseen by consumers and businesses. What they see is that their incomes are falling, their assets are falling and whatever rivers of cheap money are coming . . . ain't here yet.

The market is not presently discounting _any_ inflation. Why not?