Quote:
Originally posted by pwd72s
Out of control inflation??? You must not have been around when Jimmy Carter was in the White House....
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Well, I was around, but not a player. I've read articles that contend inflation numbers would be much higher if we used pre-Clinton equations. It's certainly no match for inflation in the 80s, though.
The only important measure, I suppose, is are we keeping up with inflation, staying ahead, or falling behind? If S&P is up 8% in one year, and inflation is 6%...
I'm just bouncing some ideas. Most who have read my posts know I'm in the deflation camp, but it's good to consider all outcomes and plan according. I just can't tell if we are truly at a breaking point, or if this is just a speedbump. I have a high cash position, and inflation is my worst enemy.
I still believe that removing excess liquidity means a fall in the US economy. However, I'm not sure if the politicians and Bernanke are willing to let this go on for long. In which case, adding liquidity = reigniting inflation and several other issues.