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  • Impending Inflation? The Global 'New Deal' All but Guarantees It [View article]
    Honestly? If the dollar drops by say 80% from here, we nationalize Canada and freeze the price of oil and we stop all imports and Isolate ourselves from the rest of the World.... hmmmm,


    No.
    Oct 26 01:50 am |Rating: 0 0 |Link to Comment
  • Impending Inflation? The Global 'New Deal' All but Guarantees It [View article]
    Increased money supply does indeed spell Inflationary expectations at some time in the future. The Velocity of that money is what causes Inflation. Currently the money isn't being used for anything other than proping up the Financial System. There is a Black Hole sucking it in and keeping it in. Without a turnover of the newly created supply, inflation will just wait in the Wings.

    IMHO, a drop in the Discount rate of another 75 to 100 basis points is needed to make it onerous to hold onto the Infusions. The Fed is already Guaranteeing Money Market Fund Integrity so there wouldn't be another impolsion there. Treasury Yields would either remain Stable, drop further or rise. I doubt a drop below a Discount rate of .50 to .75 is likely. Thereby the Institutions wil finally be able to make loans at rates higher than their costs. This would start the Velocity Ball rolling.

    Inflation won't come into play until commodities do. The thing about Recessions, the very first sector which begins to rise is Basic Materials, oil, etc.
    Oct 25 14:21 pm |Rating: 0 0 |Link to Comment
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