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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (18276)	3/6/2009 5:00:52 AM
From: Real Man	1 Recommendation Read Replies (2) \| Respond to of 71475

Well, basically, the problem with inflationary thesis so far is that the Fed is, for the most part, trying to push credit into the system that won't take it. The main part of the adjusted base growth is reserves (deflationary), while printing (currency liability) runs high, 79 billion in the past year, but not high enough to counter trillions of debt blowups. Perhaps, "only" 10% a year or so. Of course, since it's all electronic, the Fed is increasingly hard to track. In fact, I would not be totally surprised if they were monetizing without recording it as currency? Or something. Who knows what they are doing, the soup of facilities grew very diverse and extensive. Monetization has to be in the Trillions for it to cause hyperinflation. Of course, if managing rates becomes increasingly problematic, the Fed may have to print, and they said they will. But that is yet to happen. They are shuffling debt and trash around. In particular, the main "idea" is to stuff the trash on the government balance sheet, which is, naturally, quite dangerous for the currency. Maybe, I just don't get what the Fed is doing anymore, cause it is so damn hard. In particular, I'd like to see a record of every electronic printing press transaction, but hell if I know where to find it. -g-