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


To: kris b who wrote (75498)12/13/2006 11:12:47 AM
From: GST  Respond to of 110194
 
<in order for FED to generate consumer inflation> The Fed can do nothing and watch the dollar fall and prices rise. Prices are not determined by American consumers. When you go to Europe nobody looks at your passport and offers you 20% off the going rate. Nobody says, ok how much are you willing to pay. Nobody asks you what the Fed has done lately. You just get the bill -- and the bill is getting bigger by the day.



To: kris b who wrote (75498)12/13/2006 11:54:44 AM
From: Mike Johnston  Read Replies (2) | Respond to of 110194
 
So, it still boils down to the simple question how will the FED/Government get that money to the masses.

Economy is very large and complex.
If money supply is increased let's say at 15% a year, that money will somehow find its way into somebody's pocket.
This money would go into pockets of those people who are able to charge higher prices for their goods and services, for example oil industry, healthcare, government, Wall street.

Of course money will not go into everybody's pocket and for most folks in this country standard of living will go down sharply as it always does in any inflationary economy.