Posted on 10/28/2015 10:27:26 AM PDT by blam
October 27, 2015
Harry_Dent
During World War II, the Fed bought its own bonds to keep interest rates low and demand high enough to finance the war effort.
Back then, the Fed’s efforts did what you’d expect: they caused a modest level of inflation.
So you’d expect the unprecedented stimulus of today to create substantially higher inflation. In fact, with the greatest money printing in history, it wouldn’t be unreasonable to fear hyperinflation.
That’s what most gold bugs fear.
It’s what most everyone seems to fear.
They’re completely wrong.
Inflation is low… will stay low… and there will be no hyperinflation to speak of.
The money the Fed printed has largely gone into financial speculation. It hasn’t performed any real stimulus efforts by expanding the money supply through lending and spending.
So instead of inflation, we’ve seen bubbles pop up all over the financial markets. And they’re just like the ones we’ve seen before when tech stocks blew up. It was the same with real estate to follow… then emerging markets… then commodities… then gold… then junk bonds… then Treasury bonds.
Those bubbles did nothing to create a stronger future.
Instead, they tempted investors to misallocate resources. So when the bubbles inevitably burst, the system they’d stretched and warped with debt fell apart.
So why are gold bugs’ fears of hyperinflation so misplaced?
Because they’re only looking at the amount of new money being created.
I’ll grant them – current printing is unprecedented. There’s a lot of new money.
But what they’re not considering is the velocity of money.
Dr. Lacy Hunt – the only classical economist I like – explains when we invite him to speak at our Irrational Economic Summits.
(snip)
(Excerpt) Read more at marketoracle.co.uk ...
Zero percent inflation? Clearly some people don’t buy their own groceries!
Weakest economic recovery in seven decades gets weaker
Most people extrapolate present trends into the future. But yesterday's trend can look like day vs. night when tomorrow arrives.
Almost no one expected deflation when the December 2007 Elliott Wave Theorist said:
Inflation has raged, but deflation is next.
Which do you beleive / Your lying eyes , or the 'truth' commoning out from the most "transparent administration ever" ?
Is a /s even necessary ?
No kidding!
what next??? more government lies, that’s what’s next
recent price increases as just I’ve noticed and can quickly recall:
good fast food burger (said to be “best $5 burger in USA”)... $9.69 with tax
bologna up from $4.99 to $6.49
eggs up from 1.79 to 6.79
quickie cheap Chinese rice plate lunch.. up from $6 to $7
breakfast at good food but dumpy dive diner: up $2 (total of $23.69 with beverage and tax and tip)
breakfast at cheapo diner: up about $2, also (to about $14 with tax and tip
doughnuts up from 50 to 79 cents (simple kind only, none of the good and gooey ones included at this price)
lunch at decent but very unfancy restaurant, up from $8 fixed price menu to a range of about $12 to $16 per entree depending on which you select, plus they no longer offer to refill your soup or bread and they no longer include a small desert like before
shampoo... up from $1 for 32 ounces to $1 for 15 ounces
(shinking the product is the other way they jack up prices on us, just compare Hershey chocolcate bars over the years!)
little plastic bottle (one serving) of tea, up from $1.75 to $2.50
I could go on but what’s the use. Everyone can see the govt statistics are baldfaced lies. Its not just the fake inflation stats, it is also the ridiculously faked unemployment stats (about to descend into negative unemployment rate territory?)... and many more lies.
What’s next? More lies.
That’s what he does best, after all...
“Zero percent inflation? Clearly some people don’t buy their own groceries!”
The real reason they don’t count food, energy, taxes, insurance or medical costs is that a substantial amount of what the government pays out is, by law, supposed to be inflation adjusted. If they made those adjustments then the very act of making them would cause a further increase in inflation. This creates a positive feedback loop and would crater the dollar’s value in short order. So, they cook the numbers.
“In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate).”
I now pay about twice as much for a steak than I did four years ago. I guess it won’t be inflation unless it cost four times more.
The only goods I know going down are petroleum products, and that is an anomaly that exists outside of the inflation.
Does anybody have a current rate for REAL inflation in the US?
Just so. The OFFICIAL rate of inflation is zero, but that is a big, fat lie. Anyone who has to buy groceries, clothes, or pay the rent knows that inflation has been steadily flying upward. Most people are getting to the point where they can barely afford to live.
If there is no inflation then why if I put a $100 dollars in the bank for a year it won’t buy as much stuff as it will today? Food, Housing, Gasoline, and all those important things those on “fixed income” have to buy.
This Goldbug remains irrationally exuberant! :)
Inflation has been hidden in various ways through the years....
One day it will come home to roost...
“Does anybody have a current rate for REAL inflation in the US?”
http://www.shadowstats.com/alternate_data/inflation-charts
A quart of Oil is up over 400%.
I have a better explanation. That lazy, ignorant, stupid, mouthy affirmative action "Fuhrer" we have now has ordered the FedGov to deliberately lie about the statistics because his disastrous policies have produced such horrible numbers, they have to lie to help the Propaganda agents in the Media hide the fact that his policies are so disastrous.
Chicago Mafia crap. That's all the FedGov inflation/employment numbers are any more.
There has been AT LEAST 110% inflation (total) since Odumba$$ took office.
In 2008 my average grocery bill was about $150. It was that way for years, same buying pattern, same average price.
Now, with the exact same buying patterns, I am lucky to get out of the store without spending over $300 or $400. For the same groceries.
I have even gone over $500 occasionally - that’s over HALF A THOUSAND for you people edumicated by common core.
Zero percent inflation? Clearly some people don’t buy their own groceries!
No kidding. I can’t see how anyone can say we have zero inflation with a straight face. And that fact that Social Security is not getting a raise is a crime. I am FAR from Social Security and probably won’t get any but there are many elderly living on it and buying the same groceries we are, replacing the same water heaters we are, replacing the same roof we are. It is absolutely a sin that we are not giving a few dollars to SS for them. We really don’t treat our elderly well at all.
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