On inflation expectations

Comments on inflation expectations.

Category:

News & Politics

Tags:

• inflation

[AlexMerced]

I explain the upcoming inflation/deflation crisis in my blog LibertyIsNow where depending on which measure of money supply you look at inflation and deflation are both occuring, although based on federal reserves action the lost of faith that causes hyperinflation is well on it's way even if prices continue to drop in certain sectors.

[farmanntv]

@AlexMerced - Yes, it's both happening at the same time.

[TeaParty2012]

Dude, all you gotta look at is the 1970's. That was THE RESULT of high inflation. What we're in line for is going to make the 70's look like child's play. What makes maters more confusing is that the entire globe is inflating so when you compare the currencies to each other it's like deciding which turd is the best out of 5... Who cares, their all turds..

[farmanntv]

@TeaParty2012 - That is why they want one world currency, because that could be inflated much more without competition.

[SKUNKBALLScom]

Nice to hear your perspective, I think you may be correct, I do not foresee an instant collapse either, if it happens they will lose power and by chased to the airport by angry citizens.

[farmanntv]

@SKUNKBALLScom - To remain in power is their #1 objective, your best bet is that they will keep the system going.

[brewmanbrett]

Why don't you address inflation outside of the CPI?

[TadRapidly]

are you saying that the rush out of paper into commodities will NOT cause greater inflation? How can that be?

BTW-I am NOT highly educated in economics, my question is an honest one.

[IamMagPie]

Gitt at man i Norge beholder regimet om inflasjonsmål, så er jeg enig i at staten vil benytte alle mulige verktøy i verktøykassen (og den er stor og rikholdig) på å nå målet på 2,5% pa. Øker inflasjonen utover målet setter de rentene opp. Vil dette si at dersom man ellers i verden har høy inflasjon (sogar hyperinflasjon), og Norge som liten, åpen økonomi importerer dette, så vil vi få kraftig renteøktning?

[theeastwatch]

I agree the top banksters have lots of control and lots of tricks... however, based on what they've done to date I can't see how inflation can be avoided... but I'm not a bankster or economist, so my in depth knowledge of possibilities is quite limited.

Also, how do you think All out War in the middle east will effect the monies?

-TEW

[InTheSticks1881]

@farmanntv

I wish I could be as optimistic.  Rates must eventually go up, and the 11.8 trillion at the FED will enter M3. Western Banks are bankrupt and so on.

[rmcnnlly]

@farmanntv Have you by chance read Michael Panzner's book Financial Armaggedon. His book clearly sees the confusion on the part of the Federal Reserve and how they will react to the crisis. The book was written prior to the collapse in 2008 and it follows the potential policies the Federal Reserve will try in order to stave off disaster, but eventually the US government will be forced to accept hyperinflation as a last ditch attempt to stop the inevitable. Deflation today, then inflation later.

[rmcnnlly]

@farmanntv Hypothetically, I believe you are correct, however, I believe that the banks are now sitting on millions of foreclosed homes and this will continue to grow. If we enter a deflationary bump in the economy, that means there will be more unemployment, dropping business sales, more foreclosures, less government revenue coming in, and even if the Fed Gov raises taxes, that will starve off spending. Eventually the banks will be foreced to spend quickly to save themselves from disaster.