Monday, March 23, 2009
Why no inflation (yet)
Voltron says: As I mentioned back in September, the banks have a $4 Trillion dollar hole to fill. All the Trillions the Fed a printing are currently filling that hole. When it overflows, that's when the symptoms of inflation will become evident. Given the lack of political backbone shown so far, they won't have the willpower to turn off the spigot "just as things are starting to look up." I'm not ruling out the possibility that the stock market may crash again if the market is unable or unwilling to deploy the Fed's money quickly enough; however, I'm preparing to ride out the volatility until the dollar inevitable collapses.