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To: Errant

Looking at your money expansion charts I have to ask:

1. What keeps inflation from skyrocketing?

2. What keep the price of gold down?


7 posted on 12/24/2013 2:19:43 PM PST by InterceptPoint
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To: InterceptPoint

Central bank control, for now.


10 posted on 12/24/2013 2:37:47 PM PST by Errant
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To: InterceptPoint
What keeps inflation from skyrocketing?

Very, very few people are spending all that new money the Fed has made available. So, prices are increasing on a relatively small number of commodities.

If business investment were to pick up [unlikely under this administration], the competition for resources would begin the price spiral.

11 posted on 12/24/2013 2:49:12 PM PST by BfloGuy ( Even the opponents of Socialism are dominated by socialist ideas.)
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To: InterceptPoint

There has been a countervailing deflation caused by the collapse of bad loans made during the mortgage bubble. The expansion of the money supply has been designed to offset this deflation. Through HARP the Fed has been taking the worthless paper off of retail banks in exchange for new money. The net effect is a wash which is why the ‘expansion’ isn’t showing up as inflation.


130 posted on 12/26/2013 10:18:58 PM PST by Pelham (Obamacare, the vanguard of Obammunism)
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