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

To: GST who wrote (75534)	12/13/2006 11:45:36 PM
From: basho	Read Replies (1) \| Respond to of 110194

GST, I don't think there'd be too many people on this forum who think that only the Fed counts in this sort of context. It has, in fact, been a relatively minor player for quite some time. The People's Bank of China, for example, expanded their balance sheet over the 3 years up to the end of last year (the last time I checked the numbers) by over US$600 billion. This simply dwarfs the Feds US$175 billion over the same period. And this is an economy which is in nominal GDP terms about 1/6th of the US. So, as I see it, the efforts of all major CBs have to be considered in trying to make any sense of these issues. While I think Mish is at times counterproductively adamant in his definitional attempts, in my view the essence of his argument is absolutely right. Of course a host of other factors, both psychological and real, affect prices of all kinds but without the pernicious effects of fiat "inflation", the net effect over time would be minor. And that, to my mind at least, is the really important issue.