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Timm

Blanchflower: We Shall Have Inflation!

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http://www.bloomberg...anchflower.html

The economic models are telling us that we need more stimulus. Lowering interest rates and more fiscal stimulus are out of the question. Quantitative easing remains the only economic show in town given that Congress and President Obama have been cowed into inaction.

The major questions about quantitative easing aren't so much if, but how much will the Fed buy and of what type? There is little point in moving slowly. So $100 billion a month for six months seems a reasonable amount.

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Frightening. And to think this man was "qualified" to have a say in our economic future :huh::unsure:

Apparently he was "qualified" to be a "happiness guru". Didn't stop his wife leaving him for another woman.

:lol:

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Apparently he was "qualified" to be a "happiness guru". Didn't stop his wife leaving him for another woman.

:lol:

Sounds like some job title in Eco-Butlins!

'Happiness guru' for Billy Obama's glee club :rolleyes:

(Don't mention the campers)

Edited by erranta

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So $100 billion a month for six months seems a reasonable amount...

Why so timid, Danny? Why not make it a round trillion a month for a year?

NMH

Bn? Trillion you're not thinking big enough we need money to be denominated DOUBLE powers. So a loaf of bread will be £1^9999^9999.99p

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Who knows what the best thing to do is ?

If debt in the system is the problem then surely removing the debt via inflation is better than systemic collapse ?

What makes me laugh is that all these guys are paid so much money, but it's just impossible to tell exactly what's going to happen.

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Who knows what the best thing to do is ?

If debt in the system is the problem then surely removing the debt via inflation is better than systemic collapse ?

What makes me laugh is that all these guys are paid so much money, but it's just impossible to tell exactly what's going to happen.

Has debt ever been successfully removed by inflation in the long term?

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Has debt ever been successfully removed by inflation in the long term?

I don't know.

I do know that you can expect the government to try whatever it thinks it is necessary to maintain stability, irrespective of the "morality" of that necessity. If the government has to wipe out the savings of the prudent to ensure the greater good then it will do so. Rather than pat yourself on the back for being prudent, the best thing to do is hedge against all eventualities so you are at least left with something. In a systemic collapse everyone would be worried about more than a few electronic zeros.

I guess where I disagree with the government is the current necessity to take action. When the last lot of QE was done and the banks were bailed out, there was a definite atmosphere. Inovices weren't being paid, you could see the supply of money drying up, even if you run a micro business like mine.

I don't get that feeling at the moment. My preference is if there is no clear and obvious thing to do the best thing is to sit tight until there is.

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I don't know.

I do know that you can expect the government to try whatever it thinks it is necessary to maintain stability, irrespective of the "morality" of that necessity. If the government has to wipe out the savings of the prudent to ensure the greater good then it will do so. Rather than pat yourself on the back for being prudent, the best thing to do is hedge against all eventualities so you are at least left with something. In a systemic collapse everyone would be worried about more than a few electronic zeros.

I guess where I disagree with the government is the current necessity to take action. When the last lot of QE was done and the banks were bailed out, there was a definite atmosphere. Inovices weren't being paid, you could see the supply of money drying up, even if you run a micro business like mine.

I don't get that feeling at the moment. My preference is if there is no clear and obvious thing to do the best thing is to sit tight until there is.

It's a very complex issue, I know many on here have said that the 70s inflated away household debts and many people ended up with houses. But I would argue that only works if the debt expansion was then contained, it wasn't it was pushed even harder and today we are in the current mess.

I agree that govts will try and appeal to the greater majority to try and stay in power and keep society stable. However it's hard to predict what the outcomes of said policies will be. The system may already be beyond saving meaning a systemic collapse inevitable.

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I'm surprised that it's possible to inflate debt away; it implies very foolish lenders (so perhaps I shouldn't be surprised) unless it happens very occasionally and suddenly. In effect it's defaulting on a loan by a different means.

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If debt in the system is the problem then surely removing the debt via inflation is better than systemic collapse ?

I had no idea it was one or the other.

The idea that debt - ie all debt - can be infalted away is ludicrous. Indeed it was the threat of inflation that forced many into inflation-beating investments, and hence margined positions, in the first place. Inflation begets and encourages debt. Just ask any BTLer.

Edited by Sledgehead

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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