[Lokutus]

Look at all this money spilling out into the economy yesterday (Tuesday): link
The last time we saw 60 Billion was right after 9/11: link

This is totally consistent with my belief for some time now that inflation will be high in 2006 as the Fed pushes liquidity into the market. The objective will be to create a soft landing in real estate as a bubble burst would be quite damaging to the economy. The bank regulators have already started putting new regs in place regarding how banks book option arms which will make banks not want to offer such deals going forward. With that in place, the Fed will pump up liquidity to deflate the dollar and rationalize existing real estate market values.

[dbarberic]

Well that explains the jump in the US Stock market over the past two days. All that money has to have some place to go.

[Lokutus]

Yeppers.

[AmericanEmpire]

Whoooohoooo! Yes, I can go to work now and earn less money than before since inflation has eaten away some more of my earnings. God, I love the Federal reserve and its printing press.

What I'm looking forward to is when it takes a wheel barrow full of dollars to go buy a loaf of bread. God, thats gonna be fun times.

[emersonbiggins]

I have a question. If inflation does run rampant this year, will wages march in lockstep with that inflation? If the Feds really are trying to protect the real estate values, it wouldn't make sense without an accompanying increase in inflated wages to pay off those debts rather quickly. Otherwise, my current salary won't go too far in paying for $10/gallon milk and $5/gallon gas.

[jupiter422]

$this->bbcode_second_pass_quote('Lokutus', 'L')ook at all this money spilling out into the economy yesterday (Tuesday): link
The last time we saw 60 Billion was right after 9/11: link
This is totally consistent with my belief for some time now that inflation will be high in 2006 as the Fed pushes liquidity into the marke. The objective will be to create a soft landing in real estate as a bubble burst would be quite damaging to the economy. The bank regulators have already started putting new regs in place regarding how banks book 'option arms which will make banks not want to offer such deals going forward. With that in place, the Fed will pump up liquidity to deflate the dollar and rationalize existing real estate market values.

[jaws]

$this->bbcode_second_pass_quote('dbarberic', 'W')ell that explains the jump in the US Stock market over the past two days. All that money has to have some place to go.

[mattduke]

"This currency, as we manage it, is a wonderful machine. It performs its office when we issue it; it pays and clothes troops, and provides victuals and ammunition; and when we are obliged to issue a quantity excessive, it pays itself off by depreciation."

- Ben Franklin, April 1779

[Tyler_JC]

$this->bbcode_second_pass_quote('jaws', '')$this->bbcode_second_pass_quote('dbarberic', 'W')ell that explains the jump in the US Stock market over the past two days. All that money has to have some place to go.

[Lokutus]

More bad news for the USA:
China signals reserves switch away from dollar
By Geoff Dyer in Shanghai and Andrew Balls in Washington
6 Jan 2006
China indicated on Thursday it could begin to diversify its rapidly growing foreign exchange reserves away from the US dollar and government bonds – a potential shift with significant implications for global financial and commodity markets. link

Look like the entire world is ganging up on us. Could those rumors that everyone outside our borders sees us as a rogue state be true?

[nth]

This is such a one sided picture. Inflation is pretty low for a very long while and as long as China is willing to export goods to US, we will not see much of an inflation.

The reason this is one sided, it just looks at the amount of money being printed in US. How about other countries?

[smiley]

$this->bbcode_second_pass_quote('', 'I') have a question. If inflation does run rampant this year, will wages march in lockstep with that inflation? If the Feds really are trying to protect the real estate values, it wouldn't make sense without an accompanying increase in inflated wages to pay off those debts rather quickly. Otherwise, my current salary won't go too far in paying for $10/gallon milk and $5/gallon gas.