User 257960

Monetary Madness: Global Margin Call Underway

Mike Shedlock's recent article leaded me to ready his February 2, 2006 Article: Inflation: What the heck is it? It changed me prespective. I was crying what US Dollar was up and why Gold and Oil was down so much. After reading of his Article, I now understand that inflation is best defined as money supply + credit. It is true that government actions is inflationary, but the other part of the equation is credit goes extreme the other way to the downside. Adding the two together, you can see that inflation will not an immediate problem. How soon will inflation be a problem? I guess when the government is successful in restoring confidence and does not quickly remove the excess money that is now being pumped in.