real estate wasn't the big winner in the 70s inflation.
fixed rate debt was.
inflation benefits debtors and crushes debt holders.
i think you are jumping the gun - money supply is falling in spite of the incredible and terminal stimulus being used to goose the economy.
look at the third and fourth charts...
market-ticker.org
now that the bankers are talking austerity for the US, i think the stimulus goes away - what happens to money supply then?
i think the inflationistas are typically biased by two things. first, they think the government is supreme. i think the reality is obvious - the corporate/banking plutocracy is in near complete control. this could change, but the stakes are high - look at kennedy for potential consequences. second, they love that yellow dog and are rooting for it to sky rocket in price.
OK, a hatred for the dollar (or fiat currency in general) could be a third thing. ;-)
until that 3rd and 4th chart start heading north (unlikely) or money is disassociated with debt (why would the bankers end their asset stripping monetary system?), the threat of serious inflation is nil.
that doesn't mean people won't perceive inflation as a risk for time.
now, before anyone gets all happy about their dollars buying more goodies, part of a deflationary depression is destroying dollars - as in closed banks, stock market collapse, destroyed home equity, massive foreclosures, no work, etc...
money lost to the bankrupt system can't be spent, further driving down prices. |
