Matt, Why does a strengthening $US support a
deflationary move rather than an inflationary trend? Doesn't
the current $US strength reflect more of a flight to safety
from the Euro (the lesser of two evils)? Beck67er
Yes that's true, we are seeing a flight to safefy (lesser of two
evils), however remember that's what we saw in 2008, the dollar had
a strong rally.
All of this debt around the world is deflationary, not
inflationary, just printing money is not a sure way to inflation,
it's more about economic grow and bank lending and credit lines.
It's just my personal opinion, but the inflation scenario is
too easy, too mainstream, the contrarian in me tell me that we will
first see deflation, and then maybe we'll get inflation down the
road. And look at commodities, the only thing holding up is
gold for now, the CRB index tells us that inflation is not a
problem
watch this video to understand how the money supply really
works. There is far too much debt out there to just easily
print our way out
Question for Matt
US Dollar
Posted by beck67er on 4th of Jun 2010 at 11:04 am
Matt, Why does a strengthening $US support a deflationary move rather than an inflationary trend? Doesn't the current $US strength reflect more of a flight to safety from the Euro (the lesser of two evils)? Beck67er
Yes that's true, we are
Posted by matt on 4th of Jun 2010 at 11:11 am
Yes that's true, we are seeing a flight to safefy (lesser of two evils), however remember that's what we saw in 2008, the dollar had a strong rally.
All of this debt around the world is deflationary, not inflationary, just printing money is not a sure way to inflation, it's more about economic grow and bank lending and credit lines. It's just my personal opinion, but the inflation scenario is too easy, too mainstream, the contrarian in me tell me that we will first see deflation, and then maybe we'll get inflation down the road. And look at commodities, the only thing holding up is gold for now, the CRB index tells us that inflation is not a problem
watch this video to understand how the money supply really works. There is far too much debt out there to just easily print our way out
MONEY AS DEBT