<<but frankly i'd take my inflation / treasury / gold calls over that nutcase Mogambo Guru; he's getting kinda like Noland, just writing the same thing every week but changing the words a little.>>
Aww, c'mon, Mogambo is WAY funnier than Noland!<G>
I follow yer argument, but if the CB's are willing to destroy the currency and the integrity of the system (as Bernanke promises they will), I still think inflation is possible. Not desireable, mind you, I'd rather they let JPM and a few other major banksters and whack job speculators go busto and get it over with...but possible just the same.
The end result will be as you suggest, but that could still be years off, and hundred's of percent on the CPI ....especially if Bernanke takes over for BubbleBoy (God help us all!<NG>) Bonds may be up, but lest we forget, the anti-dollar is also up nearly 30% in the last 2 years. Maybe we get both domestic deflation AND the dollar gets devalued compared with other currencies and with gold...in that setting you'll only see inflation in imported goods, and Deflation in domestically produced goods and services. The worst of all worlds, to be sure, and one in which bondholders will be shagged royally, falling yields or no (thus my comment about bond returns in Euros...it COULD matter at some point, even to a Beantownian!
Certainly hyperinflation is much more politically expedient, as every ClownGreaseMan and Woman (except one or two fringe loonies like Ron Paul) has more or less proclaimed deflation to be the avowed enemy of the U.S. public. Hyperinflation is the political path of least resistence, in no small part because politicians always think their jobs are riding on it...recession (or any other temporary discomfort/inconvenience) is to be avoided at all costs by the current generation of "statesmen" here and abroad. One must never forget that EVERYTHING possible will be done to support the remaining circus tent pole propping up the U.S. economy, ie, the housing bubble. If we can screw over the creditor class (ie, Euros and other alien bagholders) at the same time, so much the better! "Vote against US in the UN, will you?....We'll show YOU who's boss!". Owe a man a billion and he owns you...owe him 20 trillion and YOU own HIM, HO HO HO!
Got wheelbarrows and $100 $nickers bars? |
