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To: staytrue

DO not depend on inflation coming anytime soon.

Why? 2 Reasons...

China, India & SE Asia factories are running UNDER capacity. They can supply all the goods and services to absorb every dollar Bernanke can print. Anything that can be manufactured will not inflate. Oil, land, & food will keep inflating since supply is limited.

2nd reason...Fed must keep printing money to keep interest rates low, currently near 1%. If interest rates go up to normal average, the cost of servicing the $16.4 Trillion debt explodes. The federal gov’t just can’t afford that any more. Look at Japan, they have been printing money, keeping rates low, and there is no hyper inflation in Japan. Their dabt is 200% of their GDP. Ours is just over 100%. Low rates reduce cost of doing business. High prime rates increase cost of doing business which are then passed on during each step of production.

What will bring this market down is falling corporate profits. That is what happened in Japan. That will take several more months to materialize here.


6 posted on 02/04/2013 1:18:51 AM PST by entropy12 (The republic is doomed when people figure out they can get free stuff by voting democrats)
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To: entropy12; All

FYI: http://www.freerepublic.com/focus/f-bloggers/2985186/posts


15 posted on 02/04/2013 10:22:47 AM PST by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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