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Old 10-31-2008, 02:25 AM
 
Location: Albemarle, NC
7,730 posts, read 13,577,233 times
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It's better than the hyperinflation I've been worried about.
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Old 10-31-2008, 05:28 AM
 
706 posts, read 1,242,530 times
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Hyperinflation will surely come once the fed has to suck up all the excess dollars they have printed. I am guessing within 2 years inflation will roar back, oil prices will skyrocket and president BHO will look just as confused as the current cardboard cutout
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Old 10-31-2008, 08:17 AM
 
Location: Great State of Texas
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IMHO I think we'll see deflation first and then hyperinflation. All this money being pumped into the system will eventually come back to haunt us in the form of hyperinflation unless the Fed/Treasury/IMF and other world banks can suck it back in again.

They are pumping money like there's no tomorrow yet liquidity is still tight.
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Old 10-31-2008, 10:32 AM
 
20,379 posts, read 18,165,297 times
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The mortgage market is certainly pricing in inflation. Its up 1/2 a point this week.
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Old 10-31-2008, 10:39 AM
 
Location: Chino, CA
1,458 posts, read 3,148,859 times
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The Fed and other central banks can reign in monetary inflation pretty quick.

If things heat up, and economies start picking up... all they have to do is slowly raise the reserve requirements and sell treasuries and raise taxes inline with banks credit expansion.

The problem with last time was that they didn't reduce the money supply fast enough and rates stayed low for a few years giving banks and financial institutions a gaping hole to exploit.... oh, I mean "capitalize" on.

-chuck22b
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Old 10-31-2008, 11:22 AM
 
Location: western East Roman Empire
8,966 posts, read 13,027,003 times
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Quote:
Originally Posted by chuck22b View Post
The Fed and other central banks can reign in monetary inflation pretty quick.

If things heat up, and economies start picking up... all they have to do is slowly raise the reserve requirements and sell treasuries and raise taxes inline with banks credit expansion.

The problem with last time was that they didn't reduce the money supply fast enough and rates stayed low for a few years giving banks and financial institutions a gaping hole to exploit.... oh, I mean "capitalize" on.

-chuck22b
I'm afraid that sound economic policy has taken back seat to reckless social policy over the past several years and I am not too confident going forward.
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Old 10-31-2008, 01:08 PM
 
Location: In My Own Little World. . .
3,238 posts, read 8,451,859 times
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Originally Posted by bale002 View Post
I'm afraid that sound economic policy has taken back seat to reckless social policy over the past several years and I am not too confident going forward.
Is ANYONE truly confident going forward no matter who wins the election? For the first time in my adult life, I am really scared about what the future will bring.
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Old 11-01-2008, 11:21 PM
 
Location: Heartland Florida
9,324 posts, read 25,593,458 times
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Deflation is impossible, the crooks printing the money can crank out cash faster than anyone can deflate. Once the deflationary pressures ease, expect inflation to explode like a room full of gasoline vapors. I expect inflation to start building up more steam by the end of this year and crank up next spring.
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Old 11-02-2008, 09:52 AM
 
Location: Backwoods of Maine
7,400 posts, read 9,710,598 times
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Originally Posted by tallrick View Post
Deflation is impossible, the crooks printing the money can crank out cash faster than anyone can deflate.
I second that motion! I would add, "faster than anyone wants to deflate". Helicopter Ben has studied the Great Depression in detail, and determined that failure to keep the money supply "adequate" was what caused the 1929 crash and subsequent deflation.

He is hell-bound and determined not to allow that to happen again!
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Old 11-02-2008, 10:12 AM
 
Location: Great State of Texas
86,052 posts, read 80,469,015 times
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Originally Posted by Nor'Eastah View Post
I second that motion! I would add, "faster than anyone wants to deflate". Helicopter Ben has studied the Great Depression in detail, and determined that failure to keep the money supply "adequate" was what caused the 1929 crash and subsequent deflation.

He is hell-bound and determined not to allow that to happen again!
The problem though, it seems, is that the money is going to the banks and then sitting there. Commerical Paper, Letters of Credit, loans, mortgages are not seeing this influx of money.

The money is NOT getting into the system and that is having an affect right now and will get worse over time.
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