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QE/Inflation


               
2012 Jun 11, 4:28am   4,671 views  15 comments

by CL   follow (1)  

Is there any evidence of QE causing inflation? Why or why not?

And what effect has it had on commodity prices, in particular?

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9   FNWGMOBDVZXDNW   @   2012 Jun 12, 5:12am  

tdeloco, do you have similar charts for Japan? It would be interesting to see what their money supply and inflation have looked like over the last 20 yrs.

10   tdeloco   @   2012 Jun 12, 5:25am  

Sorry, I don't. I sure wish I could find more reliable data on Japan. The money supply charts came from the website of the Federal Reserve of St. Louis. They developed some really good web tools for anyone to use.

However, what I've been saying all this time is that the conditions between Japan and the U.S. are very different.

11   michaelsch   @   2012 Jun 12, 7:15am  

Well, the chart predicts complete disappearance of credit and replacement of it by printed money.
Is it politically possible?
Won't banks, who control each and every financial decision, be able to prevent this?
How will it affect our creditors? (Chinese etc.) There will be quite a long period when new credit will be gone, but the interest on existing credit still has to be paid. The only way to hold in this situation will be government printing of lots of fiat money. What will be creditors reaction to such printing?

12   michaelsch   @   2012 Jun 12, 7:19am  

Many more questions.
For example, when credit will be gone, what will be the meaning of being the world reserve currency?
Won't other instruments replace dollar as such even prior to this?

When this happens, will it cause a huge price inflation with no actual increase in money supply?

13   CL   @   2012 Jun 12, 9:23am  

Thank you for your time. A lot for me to pour over, since I never used to like economics I feel like I'm working from a deficit.

I will read and re-read the information above, so you can know it won't be in vain (unless I fail) :)

Thanks again guys!

14   everything   @   2012 Jun 14, 11:10am  

QE causes PM's to go up. Commodity prices have to many variables, like crop disease for instance. Oil and gas become easier to get with technology.

Looks like bigger pockets is where the flippers/contractors/realtars hang.

Definitely shows how RE has been sold out completely, investors, Realtars, and banks pretty much control the market.

The policy of TPTB are to inflate, which is the trend. Deflation is why they push QE in the first place.

Still, with a global market, and shitpiles of dollars sitting around in foreign countries, or investors pockets we have 5-10% foreign investment in RE now, which is your basic more dollars chasing fewer goods, and housing prices are up as a result.

15   CL   @   2012 Jun 18, 7:54am  

E-man says

Anyways, just my 2 cents. YMMV.

Thanks E. Much appreciated. :)

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