For some reason mods removed the link even though I have 0 commercial interest on the site, there is no google adwords or any selling of any kind Mods, how is this different from linking an article then discussing it?If this is removed again I will contact baron as there is no a single rule against posting outside articles with no commercial purposes for discussion link removed by mod - feel free to contact baron.
What you say is true and I also make the point that pulling back at the right time(besides politically unpopular) its also pretty darn difficult and even milton friedman was saying about the cutting cycle of 2001-2004 'its better to risk a little inflation then to allow deflation take place'
The problem with increases and decreases in the money supply is that they redistribute wealth towards sectors that do not actually produce, ie banking. During the booming real estate years, how many commission based sales people became rich while not improving or producing a damn thing? The long term solution to our current financial crisis is to improve the efficiency by which the money supply is controlled and manipulated.
Weird, there is an absolute disconnect between the title of the article and the article itself. I wonder what the author was smoking... Also, why not post the article here if you really want to create a discussion about it? Lame.
Contact baron if you wish, Daal. All links to personal or commercial sites apart from articles in the news are to be removed. First, any link that would discourage traffic at ET and encourage it elsewhere is taken off. Don't think you're the only one being singled out, you're not. Second, the mods here don't have the time to personally go to everyone's blog site and verify that it's not commercial. Nothing personal, even though you'll take it that way I'm sure. This is my point exactly. He wants to encourage traffic to his site.
Daal, There is a commentator that I have been reading lately, it seems that he shares similar views to you: http://macrospeculations.blogspot.com/2009/01/ben-bernanke-is-lunatic-paranoid-money.html
OMG To all serious traders with insight: I think it's time to stop filling the pockets of this site's operators by providing good content (like Daal) and let them provide the advertising. This is not about content at all, it's only about idiots and their millions of clicks. This has become ridiculous.
Answer: Those real goods, if they are liquid, are a repository of buying power which can be converted back into inflated currency at a later time. That in a nutshell is why commodities, and other hard assets, have traditionally been used as hedges against rampant inflation. That is also why during hyperinflation people rush to spend their money the moment they are paid. They want to convert that money to, as you say, "real goods". Those real goods will inflate in price right along with the currency. If instead you hold currency, your buying power drops with inflation. If after this initial deflationary to mild inflationary period we do get into double digit inflation (and we were already there in food prices and energy in 2008 before the collapse -- nevermind government nonsense figures) you can expect commodities priced in US dollars to inflate right along with the currency. I do very much like commodities at today's low prices. This is a good time to buy oil, and aluminum is practically being given away. For example, i believe Norsk Hydro dipped below 4 bucks today! I'm counting on serious inflation down the road because i believe human nature trumps common sense every time. Increasing productivity is very difficult, raising taxes and cutting defense spending or entitlements is political suicide, but borrowing and spending shows up as inflation and the average Joe or Jill doesn't make the connection. For sure, we don't intend to pay back more buying power than we borrowed, so inflation it is.