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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Mike Johnston who wrote (75480)12/13/2006 10:36:13 AM
From: kris b  Read Replies (2) of 110194
 
At no point in the discussion with Mish have i mentioned that Fed will directly reliquify households. "

Ok, but in order for FED to generate consumer inflation ( I presume this is the hyperinflation you are talking about ) they have to do it through the household's buying (lots of new money in their hands leads to massive buying power of goods and services. If the quantity of the goods doesn't increase at the same rate that money supply is growing, you will have a lot of paper chasing limited number of products which in turn leads to skyrocketing prices).

So, it still boils down to the simple question how will the FED/Government get that money to the masses.
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