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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: deeno who wrote (23507)	6/14/2013 1:15:09 PM
From: ahhaha	Respond to of 24758

I pay what my insurance plan asks. You couldn't do anything with that anyway? Will your insurance plan keep you? Overall I would say my general bills are creeping upward. I don't remember that ever being not true. Throughout human history the creep has always ended up in the "general feel". Previous to the 1960s the "general feel" never lasted nor went and ended at a high rate. Enter the FED. What I dont see, so far, is a general feeling of inflation. "I better buy this today because tomorrow it will cost more". That's what's called inflationary expectations. It gets serious when the inflating asset is bought through borrowing. I see more, "hmm this is too much, I'll just wait for it to come down or go on sale". It takes time for the transition from intrinsic deflation(primarily asset deflation), not overt deflation which isn't allowed by FED, to intrinsic inflation, not overt inflation(+rorocGPL) which can't be stopped by FED. I guess I asked the original question because you are so tight with definitions generally, Thanks for the compliment. and inflation specifically, that I wondered what the straw was that made you think that there was no going back. Bond yields are rising on balance no matter what else is happening. This can only be caused by rising inflationary expectations. Well, then, why isn't gold rising? Gold declines with +rorocGPL because interest rates rise. Why did gold rise in the past in spite of interest rate rise? The answer is that FED adds money when rates rise in order to extend eternal prosperity by preventing rates from rising too quickly(which would tame inflation). This in effect creates an instantaneous negative interest rate. Gold always rises under negative interest rate whatever the interest rate level. The above goes against what is commonly believed. After all, FED can't just let the market determined rate jump up and induce recession. Why, doing that surely would cause depression, so FED adds money to slow down interest rate rise and thereby enables the level of rates to rise as the economy adapts to the higher rate of equilibrium. How does FED get off that merry-go-round? They're thrown off when the lenders won't accommodate any further FED action.