Is Mr. Karlgaard a Swede from Minnesota? ;-)
If we see much inflation, IMO, it will be during the more obvious end of our sovereign debt crisis. The dollar will still be deflated domestically (in the USA) while being inflated internationally (low currency). In other words, oil and foreign product prices will become higher for Americans, while they will continue to spend less.
And if our government does not shed huge numbers of employees, the default will be unavoidable. If Mr. Karlgaard is correct about his prediction of debt percentage to GDP, then debt will surpass GDP earlier than
predicted from sources, "BofA Merrill Lynch Global Research, IMF" ("Chart 3," presented by Bill Gross of Pimco/Allianz for January, 2010, in his article, "Let's Get Fisical").
Watch for a possible Treasury bond collapse followed by much decreased business activity in the USA in the near future.
Watch for a possible Treasury bond collapse followed by much decreased business activity in the USA in the near future.
The Fed will “buy” the excess Treasures with $$ it is authorized to print from Congress. People are going to get real unhappy when the price of everything goes up and jobs continue to get shipped overseas (due to increasing regulations and mandates). Obama is betting that he can shift the blame to others while continuing to hand out “freebies”.