You know I'm guessing a little inflation for everyone is still better than having these unemployment levels.
. On Tue, Apr 26, 2011 at 5:40 PM, Casey Dougall <ca...@uberwebsitesolutions.com> wrote: > > http://www.ibtimes.com/articles/138260/20110426/inflation-is-coming-to-america.htm > > Currently, Federal Reserve chairman Bernanke stubbornly and dangerously > refuses to acknowledge the existence of inflation, chalking it up to a > transitory spike in commodities prices. > > He has been lulled into a false sense of security by the low levels of the > CPI index, which is kept in check by the high unemployment rate and the > slack in the economy, as most economists will tell you. > > What many of them ignore, however, is just how fast inflation came suddenly > seize the financial system once the unemployment rate is lowered and the > slack in the economy disappears. The Weimar Republics hyperfinlation, for > example, happened in just two short years. The period during which the > Reichsbank lost control over inflation expectations was less than six > months. > > Moreover, economists shouldnt be comforted by the low inflation in the mid > 1990s and early 2000s period and use them as comparables to todays > environment because it was driven by globalization. In 2011 and beyond, > US trade partners are actually likely to be a source of upward pressure on > inflation. > > US consumer inflation can easily spike in a matter of a few months once > economic growth accelerates and the unemployment rate drops. It probably > wont be hyperinflation (assuming the Fed stops at QE2), but inflation of 5 > percent or more is quite possible. > > Alternatively, stagflation can occurred if the US dollars pace of > depreciation rapidly accelerates before the unemployment rate is > meaningfully lowered. > > > Whatever the case, the Feds loose monetary policy will cause inflation in > America in ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:336867 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
