Comments on: How the Threat of Monetary Inflation Keeps a Currency Strong http://dailyreckoning.com/how-the-threat-of-monetary-inflation-keeps-a-currency-strong/ Economic News, Markets Commentary, Gold, Oil and Investing Strategies. Sat, 26 May 2012 18:05:48 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Pinkus http://dailyreckoning.com/how-the-threat-of-monetary-inflation-keeps-a-currency-strong/#comment-99800 Pinkus Fri, 30 Jul 2010 12:53:12 +0000 http://dailyreckoning.com/?p=31449#comment-99800 I don't think we're through the rough patch. I think things only look as good as they because the government went nuts throwing money at the economy. This will result in massive debts though that must depress the economy. Taxes will have to be increased... This is all bad juju. I recommend continuing to store food etc and keep some cash out of the bank and all the rest of the sensible precautions one puts in place facing the destruction of his nations' economy. I don’t think we’re through the rough patch. I think things only look as good as they because the government went nuts throwing money at the economy.

This will result in massive debts though that must depress the economy. Taxes will have to be increased…

This is all bad juju.

I recommend continuing to store food etc and keep some cash out of the bank and all the rest of the sensible precautions one puts in place facing the destruction of his nations’ economy.

]]> By: Bloomer http://dailyreckoning.com/how-the-threat-of-monetary-inflation-keeps-a-currency-strong/#comment-99765 Bloomer Fri, 30 Jul 2010 06:29:35 +0000 http://dailyreckoning.com/?p=31449#comment-99765 We are through the rough patch. Baltic index bouncing back. How strong will this bounce be is what everyone is thinking. I think Ben has a hand on the throttle and will apply more fuel if we start to stall. We are through the rough patch. Baltic index bouncing back. How strong will this bounce be is what everyone is thinking. I think Ben has a hand on the throttle and will apply more fuel if we start to stall.

]]> By: Day Devil http://dailyreckoning.com/how-the-threat-of-monetary-inflation-keeps-a-currency-strong/#comment-99751 Day Devil Fri, 30 Jul 2010 04:14:50 +0000 http://dailyreckoning.com/?p=31449#comment-99751 Well, it could be a blessing when we see a helicopter on top of us unloading its paper bomb, firing missiles with paper warhead - that purportedly aimed to send us to hell. Then, all of a sudden we will be in fiscal celebration. Well, it could be a blessing when we see a helicopter on top of us unloading its paper bomb, firing missiles with paper warhead – that purportedly aimed to send us to hell. Then, all of a sudden we will be in fiscal celebration.

]]> By: Krakondack http://dailyreckoning.com/how-the-threat-of-monetary-inflation-keeps-a-currency-strong/#comment-99711 Krakondack Fri, 30 Jul 2010 00:05:50 +0000 http://dailyreckoning.com/?p=31449#comment-99711 Ben's position to stop inflation is severely weaker than a few years ago, with lower quality assets, longer maturities, to sell rather than simply not renew, if he wanted to shrink the money. That this is not a red flag to the markets means it's overshadowed by the deleveraging, asset deflation, and fears of general deflation. Accordingly, threats to inflate are seen as just that. If the market thought he could really cause inflation, it would have reacted some time ago, but it doesn't. At some point this will infuriate him sufficiently that he will really open the spigots, and then watch out - he does not have the concentration of T-bills he used to have to fight inflation. Ben’s position to stop inflation is severely weaker than a few years ago, with lower quality assets, longer maturities, to sell rather than simply not renew, if he wanted to shrink the money. That this is not a red flag to the markets means it’s overshadowed by the deleveraging, asset deflation, and fears of general deflation. Accordingly, threats to inflate are seen as just that. If the market thought he could really cause inflation, it would have reacted some time ago, but it doesn’t. At some point this will infuriate him sufficiently that he will really open the spigots, and then watch out – he does not have the concentration of T-bills he used to have to fight inflation.

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