Friday, October 8, 2010

Inflation what inflation

Inflation what inflation

The Fed hasn't managed to create inflation only some higher level of expected inflation. "But we’ve seen this movie before. Inflation expectations will rise briefly before the economic reality hits the market in the face and expectations come back to earth. "

Posted by bellwether @ 12:59 PM (1355 views)
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7 thoughts on “Inflation what inflation

  • The Fed hasn’t managed to create inflation

    Deflation is a [very] nice way of saying that we are going to inflate away our debts.

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  • HPW, “Deflation is a [very] nice way of saying that we are going to inflate away our debts.”

    Are you comparing apple ‘flations with orange ‘flations?

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  • I like number 7!!!

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  • Or ….. in response to “i want deflation for my commodities….” Someone must live in Lego Land!!!!

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  • 12 days until the spending review. No action to seriously reduce the deficit means inflation to me and time to take money out of the UK.

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  • Kangatrappeduk says:

    @6. miken said…

    ‘…No action to seriously reduce the deficit means inflation to me and time to take money out of the UK.’

    Sorry my friend, too late to take it out of the UK. Well, you can and you might save yourself some, but the golden goose has already flown. I came from Australia to the UK 10 years ago and it was some $3.05 to £1. Now you get half of that. Back in 2007, it was over the $2.50 mark, but the pound due to nothing worthy to sell the world, overpriced houses and continual money printing (sorry, i meant ‘quanitative easing) has now fallen some 40% since then. You see, the devaluation of the currency actually means the UK has already had its house price crash, but this has been masked by the collapsed currency. Nice little trick by the government, as the majority of the population don’t really understand economics, think all is ok see that their £500 000 house is still £500 000 or thereabouts. They could have maintained the value of the currency, but that would never have done would it, as that would have meant 40% drops in asset prices (equals houses to name amongst them). Instead, it’s been done via the currency. Hence, that’s why places like London are now such a great buy for those abroad such as Australians and all those with ‘non-joke’ currencies, as they are now buying at a 40% discount. Sadly, now that I’m a Brit (sent my money from Oz back when the £ was strong), I can dream all I like for a property crash… yep, it could drop 10% if I dream long enough… but sadly, I’m now deep in it that my wages have been frozen in the UK – my money is worth crap if I try to send it back to Oz, so I’m stuck here in the UK, having to work hard with a frozen wage (will I have a job next month?) and trying to save to buy a property, and competing against people with ‘real’ currencies who are buying at a huge discount because of the currency. Well, I always wondered why Brits were so pissed off with the whole system and can’t be ‘bovered’… now I’m one of you! Now, I do the bare minimum at work here as you are a fool unless you are banker getting paid to take risks (big profits in the boom and bailed out in the bust = can’t lose!) or if you just sit in a council flat smoking hooch and just living on the handouts. Only a fool if you try to work in a normal job. The Big Society …. We’re all in this together… yeah right! Oh well, time for me to grab another stella, as there’s no point fooling yourself folks – the bankers and their buddies will not allow an asset crash… those printing presses are being warmed up whilst you are reading this.

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