[EnergyUnlimited]

British columnist writing much on issues related to economy (Ambrose Evans Pritchard) was for last 2 years defending QE policy.

Now he have changed his mind.
He suggests that this exercise gone wild and now hyperinflation is a real risk.
That represents change of his view by 180 degree and his current plea is in fact quite dramatic.
http://blogs.telegraph.co.uk/finance/am ... d-part-ii/

$this->bbcode_second_pass_quote('Ambrose Evans Pritchard', 'I') apologise to readers around the world for having defended the emergency stimulus policies of the US Federal Reserve, and for arguing like an imbecile naif that the Fed would not succumb to drug addiction, political abuse, and mad intoxicated debauchery, once it began taking its first shots of quantitative easing...

[Roderick Beck]

Anyone who argues that hyperinflation is a serious risk is an idiot. It makes no sense whatsoever.

Mr. Imbecile Pritchard should review the Japanese QE experience before making a fool out of himself. Japan's M1 supply grew quite rapidly during the 90s without precipitating measurable inflation during the following decade.

The lack of historical understanding by today's commentators baffles the mind.

[BasilBoy]

from Pritchard
$this->bbcode_second_pass_quote('', 'I')f the US is not in deep trouble, the Fed should not be thinking of extra QE.

[the48thronin]

$this->bbcode_second_pass_quote('BasilBoy', 'f')rom Pritchard
$this->bbcode_second_pass_quote('', 'I')f the US is not in deep trouble, the Fed should not be thinking of extra QE.

[BasilBoy]

$this->bbcode_second_pass_quote('the48thronin', 'o')r is that blissfully keeping our heads stuffed firmly between the cheeks of our a**...... ( lol)

[Pops]

Jeez, take a chill, is everyone aching for a fight today?

I was about to say I doubt the entire power structure is somehow less informed or intelligent or more corrupt/self serving than your average blogger/stock market shill.

[the48thronin]

$this->bbcode_second_pass_quote('Pops', 'J')eez, take a chill, is everyone aching for a fight today?

I was about to say I doubt the entire power structure is somehow less informed or intelligent or more corrupt/self serving than your average blogger/stock market shill.

[Pops]

Naw 48, I was talking to BBoy.

[BasilBoy]

$this->bbcode_second_pass_quote('Pops', 'N')aw 48, I was talking to BBoy.

[ian807]

We will get hyperinflation, but not for a while yet.

What we're fighting now is deflation, brought to you courtesy of the over-indebtedness of just about everybody. There's a cure for that, sort of. The fed will try and stop it by pumping more dollars into the system. I'm sure they think they can control this. In reality, probably not.

Historically, that's how we've paid off debt. Think the USA paid off its world war II debt? Think again. The greatest generation did it by letting the dollar inflate, thereby allowing debt payment with cheaper dollars.

So, we'll do it again. There's a lot of pressure not to this since it would more or less erase the gains made by the world's wealthy these last few decades, so a lot of money is going to K-Street lobbyists to bribe congress not to use significant quantitative easing. If the recession goes on too long, or too deep, however, neither congress nor the fed will be able to resist the pressure.

When that happens, good luck. If you're in debt and working, hyperinflation is your friend, since your week's pay can pay off your house. If you're a saver and you've been careful, you're wiped out.

[mattduke]

$this->bbcode_second_pass_quote('Roderick Beck', 'A')nyone who argues that hyperinflation is a serious risk is an idiot. It makes no sense whatsoever.

Mr. Imbecile Pritchard should review the Japanese QE experience before making a fool out of himself. Japan's M1 supply grew quite rapidly during the 90s without precipitating measurable inflation during the following decade.

The lack of historical understanding by today's commentators baffles the mind.

[americandream]

I absolutely agree with you. Most commentators appear to be stuck in the regional capitalism of the Depression era whilst blissfully ignoring the new dynamics of globalised capital and the offsetting effects of a new more vigorous,cmphrehensive, deeper and competetive global labour/consumer market on regional money supplies.

The party is not over for a while....yet.

$this->bbcode_second_pass_quote('Roderick Beck', 'A')nyone who argues that hyperinflation is a serious risk is an idiot. It makes no sense whatsoever.

Mr. Imbecile Pritchard should review the Japanese QE experience before making a fool out of himself. Japan's M1 supply grew quite rapidly during the 90s without precipitating measurable inflation during the following decade.

The lack of historical understanding by today's commentators baffles the mind.

[EnergyUnlimited]

$this->bbcode_second_pass_quote('ian807', '
')When that happens, good luck. If you're in debt and working, hyperinflation is your friend, since your week's pay can pay off your house. If you're a saver and you've been careful, you're wiped out.

[Tanada]

The way I understand it the banks that were deemed 'too big to fail' were all given massive infusions of cash which they then placed on deposit with the Federal Reserve system. Those huge desposits are still sitting in the Federal Reserve at least as digits in the computer programs because the biggest banks didn't lend them out because of interest rate manipulations by the Fed which has forced inflation to stay at record lows for a fiat currency.

Now the Federal Reserve has started slowly raising rates, and each time the rate rises it gives more incentive for those mega banks to loan out that pile of digits in the vault to earn interest on the resulting loans.

The fear I heard expressed way back when all the money was loaned to these banks to keep them solvent is, once that money starts cycling through the economy it can cause a rapid cycle of inflation because so many more trillions of dollars exist in the computer data today than existed in 2008 before the crisis and there isn't trillions of dollars of new stuff around to offset the increased amount of currency.

So are the fears of hyperinflation about to return like a recurrent nightmare?

[Outcast_Searcher]

$this->bbcode_second_pass_quote('Tanada', '
')So are the fears of hyperinflation about to return like a recurrent nightmare?