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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Fiscally Conservative who wrote (88506)	7/3/2009 9:31:43 AM
From: Real Man	Respond to of 94695

I'm not insisting on anything at all, there are no guaranteed outcomes of this mess, we just see as we go along. I am insisting that so far the Fed has already created a lot of future inflation with all their liquidity adds, and that it's gonna hit - perhaps, while the economy is still weak, as opposed to getting "mopped up" as the economy recovers. For example, in their next meeting the Fed "could" potentially stop QE, raise rates, etc., and then we'll have one Hell of a deflation and a stock market crash. Not that they are gonna do that, but just to illustrate the point -g-

To: Fiscally Conservative who wrote (88506)	7/3/2009 5:26:03 PM
From: Aloysius Q. Finnegan	Read Replies (1) \| Respond to of 94695

What do you define as 'Hyper'?

To: Fiscally Conservative who wrote (88506)	7/3/2009 5:47:07 PM
From: Skeeter Bug	Respond to of 94695

Entitlement, i hope your you and everyone else has a happy dependence day (gotta love obama's change! -lol-). i think the threat of hyperinflation comes when interest rates go up, expenditures go up and tax revenues fall. for example, we will be looking at $23 trillion in debt within 8 years. the last time we were in financial straights, rates went up to 21%. 21% x $23 million (estimate is high, but much of our debt is short term, so it will roll over at high rates soon enough) is about $4.7 trillion in interest payments. peak tax revenues in 2007 were around $2.7 trillion. so, we have $2 trillion to print to finish paying off interest, plus another $4 trillion to print to actually pay for government. that's $6 trillion a year. year after year. some will lend us money, but not many - and only complete fools. i think current tax revenues are below $2 trillion and dropping like a steel brick onto an activated super magnet. that is a hyper inflation scenario and unless we make drastic changes for the better, it is where we are headed. don't get me wrong, we've made drastic changes under obama, but for the worse. drunken sailors all over the world are blushing at his ability to burn cash. i do think we get a depression, deflation scare first. but medium to longer term looks absolutely nasty until america the greed bag debtor nations decides it is time to do with less - about 25% less. at least.