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Reply #36: "t already hasn't driven inflation" [View All]

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melm00se Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-30-11 12:53 PM
Response to Reply #29
36. "t already hasn't driven inflation"
you sure about that?

as examples: let's look at the worldwide commodities markets:

Oil prices (+40% in the last year)
gold (+25%)
copper (+37%)
coffee (+94%)
cotton (+94%)
sugar (+60%)
soybeans (+40%)

why do you think it is? speculation? partially. The biggest thing is the weakening of the US dollar:

and why is that?

QE is certainly an explanation. QE1: $700-800B; QE2: $1.2T

The next question: how much did the economy grow during that same time? certainly nowhere near the amount of "money" injected into the economy.

The final question: historically what happens when money supplies increase faster then economic growth? review the economic history of:

Bosnia and Herzegovina
Free City of Danzig
Hungary, 1922-1924
Hungary, 1945-1946
Poland, 1921-1924
Poland, 1989-1991
Republika Srpska
Russian Federation

of course unless you seriously believe that the US economy doesn't follow historical precedent?

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  -When will interest rates go back up? Courtesy Flush  May-29-11 01:18 PM   #0 
  - just before you can afford to buy a home  FreakinDJ   May-29-11 01:20 PM   #1 
  - When the economy is recovered, not still in recovery  Taitertots   May-29-11 01:21 PM   #2 
  - If the GOP gets their way, it won't be long. Don't count on savings accounts to go up, but loans...  HopeHoops   May-29-11 01:30 PM   #3 
  - As soon as the policy of quantitative easing has allowed the government  individual rights   May-29-11 01:31 PM   #4 
  - So, how does QE "plunder" your assets? n/t  Taitertots   May-29-11 01:53 PM   #7 
     - By creating money ex nihilo...  individual rights   May-29-11 02:10 PM   #10 
     - LOL! Did you base your opinion about the situation on that obvious bullshit?  Taitertots   May-29-11 02:28 PM   #11 
        - It should be obvious, the law of physics affirms that something cannot be created from nothing.  individual rights   May-29-11 04:41 PM   #13 
        - You know little physics and even less economics, apparently. First, you  coalition_unwilling   May-29-11 04:54 PM   #14 
        - I suppose that metaphysically, it is theoretically possible to get something from nothing, but we  individual rights   May-29-11 05:14 PM   #15 
           - Enjoy your stay. Alas, shall be without my insights. - n/t  coalition_unwilling   May-29-11 05:19 PM   #16 
              - You seem to be suggesting that any criticism of Bernanke and the fedreserve  individual rights   May-29-11 07:22 PM   #17 
                 - Not blasphemous, just not based in reality  Taitertots   May-30-11 07:43 AM   #20 
        - Your statement is incorrect for two main reasons  Taitertots   May-30-11 07:39 AM   #19 
        - If you don't understand this BASIC STUFF.  sendero   May-30-11 08:16 AM   #23 
           - Is this supposed to have the sarcasm tag?  Taitertots   May-30-11 09:28 AM   #30 
              - I didn't look at any video..  sendero   May-30-11 11:09 AM   #32 
                 - A lot of people think they know what happens when you print currency  Taitertots   May-30-11 11:34 AM   #33 
                    - Economics..  sendero   May-30-11 11:47 AM   #34 
                       - Two years is generally accepted as long enough to see inflationary effects  Taitertots   May-30-11 12:05 PM   #35 
                          - QE is already causing inflation..  sendero   May-30-11 05:25 PM   #38 
                             - It hasn't, it isn't, and there are other factors  Taitertots   May-31-11 04:58 PM   #41 
     - QE  melm00se   May-30-11 08:18 AM   #24 
        - It already hasn't driven inflation  Taitertots   May-30-11 08:29 AM   #29 
           - "t already hasn't driven inflation"  melm00se   May-30-11 12:53 PM   #36 
              - Cherry picked price increases are NOT inflation  Taitertots   May-30-11 01:26 PM   #37 
                 - the published CPI  melm00se   May-31-11 04:55 AM   #39 
                    - Food and energy were intentionally glossed over to avoid making the results misleading  Taitertots   May-31-11 04:39 PM   #40 
  - I think that interest rates will go up this year.  theoldman   May-29-11 01:40 PM   #5 
  - ->ATTENTION: Starting this June, the Federal Reserve will nolonger be purchasing Federal...  Poll_Blind   May-29-11 01:43 PM   #6 
  - .  divvy   May-30-11 08:19 AM   #25 
  - Your last sentence explains why stocks rocketed during QE.  Lucky Luciano   May-29-11 02:06 PM   #8 
  - Any time the Chinese say it will  ThomWV   May-29-11 02:09 PM   #9 
  - THAT's the correct short term answer.  unblock   May-30-11 08:12 AM   #22 
  - I think Oil Exporters own more debt than the Chinese  divvy   May-30-11 08:28 AM   #28 
  - OP says....  katanalori   May-29-11 03:26 PM   #12 
  - When the bond markets lose confidence in our debt instruments.  roamer65   May-29-11 07:27 PM   #18 
  - that will not happen for at least a couple years.  unblock   May-30-11 08:10 AM   #21 
     - I posed that question to a friend ..... his response  divvy   May-30-11 09:35 AM   #31 
  - interest rates  melm00se   May-30-11 08:21 AM   #26 
  - Unemployment at 7% or less, and upward pressure on wages.  divvy   May-30-11 08:23 AM   #27 

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