Posted 11/11/2012 14:24 (#2690980 - in reply to #2690851) Subject: RE: What happens if inflation takes off?
Frytown, Iowa
John Burns - 11/11/2012 12:23
While there are non-believers in the deflationary crowd,
john who really is correct? the deflationary crowd or the inflationary?
if we were not printing massive amounts of money we would experience massive deflation at some point and would have true growth after the crash... being that we are printing gobbs of money we are in a spread out deflationary position with deflation gaining control as the drugs (easy money) are wearing off and the sickness (we will call that deflation though you could argue it is the addiction to the drugs) is growing...
the answer is both... we are in a very delfationary scenario however we are also in an inflationary scenario.... stagflation.
the deflation is real, meaning if there was no "intervention" we would have massive deflation... the inflation at this time is "false" meaning it is the intervetion...
what is the real question is: when does the "real scenario" become inflation instead of deflation... and the scaryist realization is that inflation is harder to stop than deflation...
however as arrogant as the federal reserve is... i believe they think they can stop inflation easily by taking away the qe infinity or by raising interest rates...
where the fed will fail in trying to control a free market is when inflation is getting out of hand (and it is very appearant to the public) AND we still have a deflationary pressure on the world economies..... when the fed tries to subdue inflation in order to keep THE PUBLICS FAITH in fiat currency... THEN we will have a depression that will knock majority of folks back to the stone ages...
those who have, will be robbed... those who have not.... will be "africa poor"
sorry for the ramble... this may be more for others than for you as you probably could have written the exact same paragraph...
didnt get to the interview as im limited on time this afternoon.. just thought your first sentence was something to comment on... :)
What happens if inflation takes off?
