Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: TigerLikesRooster

This purchase be compatible with his Dr. Doom’s views. Inflation is too much money chasing too few goods. Hyperinflation is everybody scrambling to dump a currency into something which can store value; gold, food, condos. Some of the reasons we’re not seeing Jimmy Carter style inflation now is that the Fed has the currency safety valve, the interest rate, tied down in the off position. If you’ll recall, Jimmy Carter added 13% to the money supply and that was countered by 20% interest rates for about 3 years. But this Fed is not independent and is working hand in glove with Obama and keeping the interest rate down despite adding an estimated 200% to the money supply.

Us consumers aren’t seeing hyperinflation because we, the public, are panicked over the future so we’re holding onto our money. It doesn’t matter how few Chinese made 55 inch plasma TV’s are in the store if you’re afraid you won’t have a job soon. Hence, very little apparent inflation. So, Dr. Doom is right to buy a well located apartment. When he sells it in three years, he may get $20 million new dollars for it. (The New Dollar will feature portraits of Democratic politicians.)


7 posted on 12/19/2010 4:00:19 AM PST by Gen.Blather
[ Post Reply | Private Reply | To 1 | View Replies ]


To: Gen.Blather

Tying the relief valve down on our pressure cooker economy is a recipe for disaster.
The instrumentation that should tell us pressure, temperature, velocity... are faulty at best.
Very difficult to run a complex system on manual.
Possible to just blow a gasket and slow it down, also possible is a catastrophic failure of the containment with sudden expansion.


16 posted on 12/19/2010 4:46:46 AM PST by DUMBGRUNT (The best is the enemy of the good!)
[ Post Reply | Private Reply | To 7 | View Replies ]

To: Gen.Blather
Hence, very little apparent inflation.

Haven't been to the grocery store for a while, eh?

:O(

17 posted on 12/19/2010 5:03:35 AM PST by metesky (My retirement fund is holding steady @ $.05 a can.)
[ Post Reply | Private Reply | To 7 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson