Re: I agree that a weak dollar and high commodity prices restrict what the Fed can accomplish. I just do not agree that is inflation.
I wish you'd stop writing that. Here's why.
You were right when Bernanke, Greenspan, and the rest of the fed were completely wrong. You wrote it out, you wrote why they were wrong and you were right, and it's all in a very clear record.
I think those guys read you, now. I think they think that you're right even when don't understand why or how it could be.
You've now written, repeatedly, that Bernanke can exchange an infinite number of Federal Reserve dollars for worthless RMBS, SIVs, CDOs, etc. without slowing down deflation, much less causing inflation.
They don't see how that can be, but Mike was sure right last time so...
If the FED continues to exchange U.S. dollars for every worthless piece of crap forwarded on to them by every bank, hedge fund, etc. that's made a bad decision in the past 5 years we will end up with terrible inflation. Please start adding caveats to what you write because you continue to overestimate the competence of these guys - they're incredibly separated from reality. You seem to think they'll exercise some common sense but they don't even know what that means. You seem to think they'll stop very soon when the FED's balance sheet starts to look weak.
I'm concerned that (partly from reading you - so right in everything else) they'll go ahead and accept another 2 to 3 trillion in junk - and that would really wreck things and put us on the road to weimar levels of inflation. |
