"...The threat of Debt debt deleveraging deflation has INFLATIONARY consequences because the governments will not ALLOW for actual Price DEFLATION because it would INCREASE the real value of government debt therefore increases the risk of governments going bankrupt as the debt interest rises, when the real intention is to INFLATE the real value of debt away. INFLATION is also one of the governments most important stealth taxes on the people whilst DEFLATION acts as a subsidy TO the people i.e. their standard of living INCREASES during DELFATION as prices fall whilst inflation gives the illusion of increasing standard of living as workers are stealthily forced to work harder for less real pay despite increasing productivity..." N. W.
in theory if govt inflates, increase money supply etc. commodities go up and your purchasing power goes down, good thing there is no evidence of that in the US.
Maybe the thinking is, With the election out of the way, Benjamin "Shalom" Bernanke is likely to underdeliver. That would mean a sell off in gold and stocks.
right everyone should be painting scenarios what do you think bonds do here should I be long or short tlt?
the standard of living for a tip the scales amount is zero,writing everyone a check would do more than the qe2,it would get pumped directly back into the economy,once we start gaining jobs at 500k a week,instead of the opposite,benny can worry about the debt, the monster here is wall street, they hoodwinked the banks with their offshore credit default swaps,,packaged mortgage loans,it was pure genious except fpr the fact that they killed the golden goose,then they got benny a second time on the tarp,now a third application to the same monster is a waste of the few bullets they have left... i would (personal opinion)say back to the drawing board for benny,he needs help from d.c.,they need to ...get some balls ... convict someone besides bernie madoff... not happening
They can raise IRs whilst carrying on printing money to try and deflate prices & keep inflating economy.