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Dog-faced pony soldier
Join Date: Feb 2004
Location: A Rock Surrounded by a Whole lot of Water
Posts: 34,187
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Inflation is a tinderbox right now. Yes, it's being kept in check by a seriously deflating economy for now, but I have a hard time believing this can stave it off forever. Eventually things are going to either hit bottom or start to turn around. When they do, there's a LOT of pressure on inflation to skyrocket. It could jump very quickly followed by the predictable actions of the Fed (as in the 1970s) to push interest rates extremely high, which could in turn quash a recovery, which would prompt the government to infuse more money, which would put more upward pressure on inflation... (see the cycle?)
Interesting times - I don't know for sure how this is going to play out, but inflationary pressure is the 900-pound gorilla in the room nobody's talking about just yet. You don't just chuck 3 or 4 trillion bucks into circulation with no inflationary ramifications...
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A car, a 911, a motorbike and a few surfboards
Black Cars Matter
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