Thursday, May 19, 2011
Article suggests long term inflation
Not so sure I agree but I thought a good article because suggests that there may be no flight to cash i.e. everything is overvalued, the government won't allow writedowns, the money supply will not adjust, but that does not mean necessarily that investors first out leave the indebted behind and look to treasuries of some government variety. They might just run for it. Literally years ago I posted some article about a central banks response to credit deflation, which was basically credibly promise to allow inflation to run riot, even though they won't, which was the fix. Of course, if they truly succeed then they could get in the position that they could not realistically tighten sufficiently later i.e. blow the whole thing up.