tag:blogger.com,1999:blog-2992740250270600844.post2792878585369061747..comments2024-03-24T05:26:32.964-07:00Comments on Advancing Time: Inflation Expectations Solidly On The Rise Bruce Wildshttp://www.blogger.com/profile/10181323607060607040noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2992740250270600844.post-69721977855727397912020-12-30T07:03:16.706-08:002020-12-30T07:03:16.706-08:00PeruchoCanuck, than you very much for you enlighte...PeruchoCanuck, than you very much for you enlightening comment. We should not forget inflation can take on a life of its own. Bruce Wildshttps://www.blogger.com/profile/10181323607060607040noreply@blogger.comtag:blogger.com,1999:blog-2992740250270600844.post-56808630867775582882020-12-30T06:45:35.861-08:002020-12-30T06:45:35.861-08:00Growing up in Peru, I remember prices changing two...Growing up in Peru, I remember prices changing two or 3 times the same day. Sometimes grocery stores will close because they didnt know how much to charge you anymore: "During the 1980s, Peru, like many Latin American countries introduced a number of trade liberalization polices. At the same time, government increased public spending, privatized enterprise, and neglected to service the nation’s external debt. As a result, by the end of the 1990s, Peru’s already small economy – which once had been enticing avenue for foreign direct investment – was experiencing not only negative economic growth, but also deficits of all types, as well as hyperinflation. While hyperinflation became apparent, the Peruvian government replaced the Peru “Old” Sol with the Inti, in 1985, at a rate of 1,000 to 1. The largest denomination of this new currency, was a 1,000 note. In two years, monthly inflation would increase by a rate of 132% in September 1988, and later 400% by September 1990. In order to facilitate the new higher prices of goods and services, new notes were introduced such as the 10,000,000 Inti note by 1991. Again, Peruvian government decided again to replace the currency, this time with the Neuvo Sol, at a rate of 1,000,000,000 to 1. The result was a currency that was worth one billion times that of only six years before."PeruchoCanuckhttps://www.blogger.com/profile/17028416301426131382noreply@blogger.comtag:blogger.com,1999:blog-2992740250270600844.post-50885040549540579942020-12-28T15:53:40.378-08:002020-12-28T15:53:40.378-08:00Look. I've read some version of your article 1...Look. I've read some version of your article 1000 times in Zero Hedge. I am dead against insanely reckless Fed activism, and I hear warning after warning, but none of you ever come up with anything realistic on how this is going to play out and cause an economic meltdown. Your essay is on inflation. You say the worm has finally turned on M2 velocity, and you give good reasons, and you may be right. However, then you say that inflation will cause higher rates. No it won't. I don't care how high inflation is, Powell will just buy more insane amounts of ten yr treasuries under unlimited QE and keep those rates from going much over 1 percent. He does not care in the least if the Fed balance sheet goes from 7 trillion to 50 trillion. Rates won't go up. Period. So there it is. High inflation, say 3 percent, and surpressed yields that don't rise at all. Then what? Why is this bad? What will happen? All of you have either a "dollar crash" or spiking interest rates in your scary scenarios, yet neither of these things is going to happen, so how will it play out?Anonymoushttps://www.blogger.com/profile/01250721157199304354noreply@blogger.comtag:blogger.com,1999:blog-2992740250270600844.post-23621364556066327102020-12-28T12:12:41.634-08:002020-12-28T12:12:41.634-08:00"While the blame for this is being solidly pl..."While the blame for this is being solidly placed on the back of Covid-19, it could be argued the financial system and the economy has been skating on thin ice for over a decade."<br /><br />Which is why i'm of the belief that Covid 19 is being used as an excuse to blowup the eCONomy. Because those pulling the financial strings know full well the financial, banking and monetary systems that came about during the infamous meeting at Jekyll Island is about to implode. I totally agree with the author that wage disparity is behind our current predicament and yet those pulling the strings know full well that inflation will further increase wage disparity.<br /><br />Also inflation comes in the way of stealth mode i.e. product shrinkage. The next time you are at the Supermarket check that half gallon of orange juice because it's likely that it's no longer 64oz but 52oz and it now cost you more.Rod Briggshttps://www.blogger.com/profile/01892085143658761123noreply@blogger.com