kenrun

Evidence That Big Inflation Is Coming

After reading all the response so far, I think Libertad comes the closest to the reality of the issue. The question is not what you call it, but what are the effect of it now and going forward. What if it is technically inflation but with all the other variables resulting in lower prices now and for several years to come? If so, then who cares what you call it? I would have liked it if the author of the instigating article had, after supporting his argument, gone to predicting what it all means..anything less is just arm chair BS. Is it a depression with inflation with lower prices and if so for many years to come (which I think is true), if so, big deal what it is called? Or does he mean prices will soar like we are familiar with in other inflationary times where people race to buy before prices rise even more (which I think will not happen for at least 3- 5 years). That is the real question, making all other terms in this article moot.


On Jan 25 10:00 AM Libertad wrote:

> This is a rather simple matter....
>
> Monetary velocity, deflation, inflation, money supply, money printing....are
> all attempts to categorize and quantify future expectations....

>
>
> The reality is that there is not a true measure readily available
> that gives the information that is required as to how money will
> be spent....
>
> A simple example would be Person1....
>
> Person1 has $100,000....
>
> Later on the same $100,000 is reduced in value because the money
> stock was diluted in value....10x the money was printed....and thus
> the previous $100,000 becomes 1/10 the value what it was before....

>
>
> However....if 10% of whatever is available is spent....the economy
> will be valued as it relates to the 10% spent....
>
> If 20% is spent....then the economy becomes worth more....because
> 2x the cash is moving to other labels within the economy....
>
> So what matters is 1) what is available 2) what is spent
>
> Futhermore....money either stays or leaves the local economy.....Money
> leaves to other economies if imports are bought....and stays in the
> economy if domestic production is bought....
>
> Thus a country can have a depression if no money is spent....regardless

>
> of savings levels....money printing, etc...
>
> Also....if there is very little savings....then the choice of spending
> is very clear....

It Could Happen - Cramer's Mad Money (9/26/08)

Cramer says "We are truly in dire straits here people... failure of Congress to pass the bailout plan is causing the banking system to fall deeper into trouble. ... Dow could drop to as low at 8,378 – a 2,768 decline – ...Deal or not, we’re still most likely going to see a recession, so you want to preserve capital at all costs."

A month ago Cramer said we tested the bottom, the bottom was in and was recommending buy buy buy, now, he is saying the sky is about to fall. A little bit late, isn't he, and not until he had his followers investing and losing their money. Now he wants you to preserve capital....he means take your losses you have from listening to him before they get bigger because he was dead wrong. Glad I didn't listen to him and have been in cash. Hmmm, if is now saying sell, I think the bottom might be near.

Nuclear Winter Pick - Cramer's Mad Money (9/24/08)

What a crock of you know what. Cramer says
"The American People are more concerned with punishing Wall Street bankers than making sure the ATM spits out money the next time they need it."
Fact 1) the US citizen and his offspring will be paying this off for generations to come and there is more debt we will be taking on than they are admitting to. If you don't believe me then consider this:
Fact 2) Paulson has not told us the truth once in the last four months, do you think he has all of a sudden changed his ways?
Fact 3) These bankers cut off our knees and then we are to be grateful if the government turns around and promises us a wheelchair?
Fact 4) Stop the BS Cramer, it is a bail out and not "investing in America" and to be more accurate, its the "destruction of America" and it was done by the greedy bankers on wall street who knew what they were doing, knew it was in many cases illegal and sold us out while they got rich.
Fact 5) the dollar will dive, our great great grandchildren will be paying off this ever increasing debt because Paulson is going to print money that does not exist and the taxpayer will be eating it forever.
Fact 6) If the debt is greater than we are being told, the dollar sinks and sinks and our grand children are to be burdened with this debt the least Paulson and Congress can do is send many of these people to jail because what these bankers did was literally illegal. When I hear on the news that Ben and Paulson want to stop this from happening again I know they are spinning a lie, because I do not hear any of them saying "to prevent this from happening we preparing a case for prosecution." Just like a drug smuggler that gets caught, we are going to seize all of these CEO's and VP's assets and send them to jail, that is the best way to prevent this from happening again. We do not need more oversight or rules, just enforcement of the ones we already have. Seizing their assets and sending them to jail is a great start and will send a message never sent before: You were paid millions to invest in America not in yourself, you abused your responsibility, were not worthy of the job, committed crimes and now you will pay"

Anything less makes Ben and Paulson accessories to the crime.