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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (774952)	3/14/2014 4:24:31 PM
From: PKRBKR	1 Recommendation Recommended By TideGlider Read Replies (1) \| Respond to of 1577007

What is wrong with easy money? The crisis was not the result of access to easy money for those who qualified it was access for those that didn't qualify. Bankers compounded the problem with the shell game created by Goldman-Sachs but this never would have happened if Washington hadn't demanded banks lend to those that didn't qualify.

To: Steve Lokness who wrote (774952)	3/16/2014 8:27:02 AM
From: RetiredNow	Respond to of 1577007

Nice post, Steve. That article I posted earlier tries to explain where the inflation went. But it's anyone's guess at this point. I think Austrian theory is more right than Keynesian, though. It's just a matter of whether you believe in living within your means or not. In a connected, global world, when the US Fed prints money, that money goes where the yield is, which was to the emerging markets. That money drove up prices and even stimulated decent growth over there. Look at some of the countries now experiencing classic Austrian consequences of inflation and goods shortages. Now, as the QE is tapering, the more responsible EM countries are increasing rates to protect against runaway inflation over there. When that money comes home, what do you think will happen here? I don't know, but ABCT would tell us that inflation will start to pick up in the US, if they continue to taper or even raise rates here. That flood of money will find it's way into increased prices, just as our economy starts to stall. Then we may see a replay of the 1980's. We sure do live in interesting times. Mostly, I'm thinking not about how to make money, but how to preserve wealth. As the retail investors seek the last little bit of upside, I pity them. This isn't the time to be thinking about how to position your portfolio long. Preservation should be the focus now.

To: Steve Lokness who wrote (774952)	3/16/2014 5:27:59 PM
From: RetiredNow	Respond to of 1577007

Check it out...inflationary pressures overseas due to our Fed's actions. All that Fed QE flew overseas and drove their economic growth and inflation along with it. Now in the late stages of that, they are having to take action to fight off inflation in the emerging markets, even as our Fed removes stimulus from them. This is exactly what ABCT said would happen. bloomberg.com Faster Inflation The central bank today raised its forecasts for inflation, predicting it will reach the 2 percent midpoint of its target range 18 months sooner than estimated in December. “With inflation now rising and inflationary pressures building, there is a need to return interest rates to more-normal levels,” the bank said in its Monetary Policy Statement. “The speed and extent to which the cash rate will be raised will depend on economic data and our continuing assessment of emerging inflationary pressures.”