I agree - in the short run (with you, not with Bernanke).. Prices are already high...for most everything... Even $2 gas is high, but just not compared to what it was 6 months ago... Peak oil simulation preparing everyone for the real deal... ATL gas shortage - a total microcosm test of the system... If consumer price increases double from here, and employment also doubles (which is possible unless one has been blinded by Keynesian bullshit), it would be 4 times as painful... T-bill yields are zero, but not because of deflation or fears of it - it's massive, unprecedented deleveraging, but not the true economic realities of deflation.
The DEMAND comes from the money we print... You don't need to have growth to have inflation.. Just look at Zimbabwe..
Well I don't trade or invest that way - I don't put all my eggs in one basket and I always admit that there is a chance that I could be wrong. I just don't think so. If I am - then so be it...I will live to fight/trade another day...
Obama sucks. You have no idea what free market capitalism is about. This from a guy who bashes the Constitution, promotes bailouts, wars, and deficit spending.
I'm as big a fiscal neo-con that you will find, but it is sad that private markets haven't stepped up to the plate and dealt with this in the beginning. Transparence in markets is rule number one in having faith in capitalism and everyone did their best to hide the market inefficiencies. I have 100 percent faith in free markets, but I have zero faith in the humans that operate free markets.
The Fed has been "printing" money for most of this year, yet crude has collapsed over $100 per barrel and retail gasoline prices have dropped by 65% in ONLY 5 MONTHS! There is no DEMAND for money when T Bill rates are nearly ZERO. I think that you underestimate the current situation in the economy, let alone the global economy.
The markets were FREE, but not FAIR. No accountability, transparency, or oversight given the "Commodity Futures Modernization Act of 2000". Credit default swaps and Electricity contracts trading OTC and under the desk? WTI trading overseas in London and Dubai with no oversight, no position limits, etc. Yep, that's THE ticket!
there certainy are inflationary forces that may show themselves more...in the future. for now, the deflationary forces are outweighing them.