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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (67744)	11/3/2010 3:14:11 AM
From: TobagoJack	Read Replies (1) \| Respond to of 220025

My time line remains 7 - 15 years, then darkest interregnum

To: energyplay who wrote (67744)	11/3/2010 8:39:49 AM
From: carranza2	Respond to of 220025

I think that for the next 18 months - 2 years the Fed will be able to do some QE without much inflation. Agree, but I think you might have wished to add the word 'domestic' before the word 'inflation' for QE2 will result in USD going overseas, and thus exporting inflation. Currency difficulties will take place and a USD carry trade fostered. The overseas effect of QE2 will mean that it is unlikely to do what it is intended to do. The Japanese experience really is the correct precedent. The fact is that QE does not work in a world where capital and cash move about in a very free way. In order to have any domestic effect whatsoever, QE needs to be massive. There is a heavy price to be paid for that, i.e., ultimate impoverishment in exchange for a temporary reprieve. I agree that the fiscally sound and economically rational states and places in the US will prosper inordinately at the expense of the wastrels like Fla., Az. and California. I am beginning to think that we will not see any inflation for the foreseeble future, at least a decade because, well, Japan really is the model.