Thursday, May 24, 2007
US Policies Promote Inlfation Despite Fed's Rectoric
The Asian Times: A strong dollar and US interests
A readable article which suggests the US policy toward the dollar truly is disconnected between what ought to be in the country's interest and what current policies promote. Policies are promoting a weaker dollar and higher inflation; one idea why is Bernanke's desire to avoid deflation, see " ... the Fed is rather concerned that a credit contraction combined with high levels of consumer debt could create a Japanese-style deflationary spiral; to avoid having to deal with deflation, the Fed should induce inflation." Higher inflation will erode debts for the US - convenient. Will inflation come to the UK? If it does, will the MPC choose to erode debt too? Author is Axel Merk, a portfolio manager of the Merk Hard Currency Fund.
Posted by talking rot @ 09:33 AM (144 views) Add Comment
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
No comments have been submitted.
Be the first person to add your comment by completing the form below.