Ed,
Yes, the extra money being printed by the Fed will appear sooner
or later as inflation, always has, always will. But this time it may
be different if all i have heard about the US dollar having been for these
past many years the best currency, and almost all nations depended on
the strong dollar for their exports, and also nations may have invested
into objects having value based on a dollar's worth, like the stock market.
Here it gets mumbo jumbo saying the US dollar will lose value
because its in relationship to what thats important. For sure we all
know that the price of gold increasing in US dollar amounts seems to be
more of a strength in gold than a weakness in the dollar, but not looking
at the price of gold, or other commodities like steel and grain stuff
increasing in price due to either a weakness in the currency use to buy
to reflect inflation, or simple supply & demand factors, i wonder what
the outcome of the US dollar, being the best or strongest of all currencies
of world nations, would do to them other currencies if the US dollar falls,
as in everything is relative and if other nations currencies fall because
of a fall in US dollars, and their fall is similar, then trade between nations
will not see a change, but only internally in each nation seeing
inflation towards products produced and sold inside the country.
Something is wrong with my thoughts here since for a nation like Japan
that imports most everything it needs it seems like they would not
be affected versus a nation using home-grown-producted inflation ridden products.
But then if this wacked-out example is correct, then all nations would
try and import everything even if it home grown. But then supply & demand
would kick in and increase prices.
or, Its a mess without any happy ending.
or, as you said,
"... can go to bonds and CD's and discover...
Just watch and see what all the extra money does that we're printing.
There is risk in any direction one turns..."
so,
Before it get better, it will first get much badder.
doug |
