May be I was not clear enough, but my line of thought is just a little different.
As I see it I would expect inflation IF there was a way to blow a new bubble, and IF there was a way to put people more in debt (as savings is already at 0, only debt rests).
In simple terms the cow 'average working man' does not not have milk anymore to give. So why would you give him a new hormone shot or even new feed. The efficient way to handle that situation is to kill the cow and look if you can reap any benefits from the carcass.
As there is no real wage growth to be expected, mainly due to globalisation effects, and US has little manufacturing base left .... how can you generate inflation (assuming there is no new bubble). Also which customer wants to lend if housing is not rising?
The second more important question for me is: What is the FED, who controls the FED, and how can the owner of the FED benefit? Just like every CEO, owner, etc.
What comes first .... their private interest.
So yes, a lot of banks will go broke, but so what.....
if the CEO and owners of the FED would have their assets save (in gold, or Swiss Frank), what would they care.
THen deflation for them privately will get very interesting as after a bust they will be able to gobble up houses, businesses, etc. for a fraction. |
