Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (67975)	8/10/2006 2:23:50 PM
From: Mike Johnston	Respond to of 110194

"long term rates still near 45 year lows " That is the reason. Great inflations start when rates are being kept artificially low and excess money is pumped at those low rates. Inflation will turn into hyperinflation if money supply continues to grow at 10% + and public wakes up to that fact and takes protective action and the Fed accommodates rising prices. If Volcker did not slam on the brakes who knows what would have happened in the 80's. If inflation is 10% and rates continue to be in 5% range then this outcome will be totally different than 70's, because sooner or later people will wake up and Ben is the opposite of Volcker.