Let’s see.
We are living in a very connected global economy with only 6 or 8 other real players. All of which have their own very real deflationary issues.
Japan, #2, is a disaster.
China? they are basically the slave labor for the rest of the world.
The EU is pretty much Germany and they wont be able to carry the weight for much longer for any number of reasons. The EURO currency will not last.
The UK doesn’t produce anything tangible.
None of the other players are even close to what the US is.
We are the best house in a really bad neighborhood and there is no way the money wont move this way.
My thinking exactly. As someone said, all currencies are falling rocks - because they are all fiat money - but the dollar is falling more slowly than all the others.
But in my gut, I have to believe that all the QE/money creation cannot occur without serious consequences. It’s only not a problem now because all those dollars are not in circulation (M3).
I personally believe the reason we are not seeing inflation (we are in things like food) is because we have simultaneous inflationary pressures and deflationary pressures (e.g., oil, poor economy, true unemployment, etc.), with the deflationary pressures cancelling out most - but not all - the inflationary pressures. I’m by no means an economist - or even a math major - but it seems to me no nation has ever been in this situation before.....
The book “This Time Is Different - Eight Centuries of Financial Folly” by Reinhart and Rogoff (”This is quite simply the best empirical investigation of financial crises ever published” - Niall Ferguson) says I’m wrong though........