Money needs to move i.e. circulation for inflation to occur. The faster it moves i.e. the velocity, the more price inflation. If you just print a load of money and it sits in the corner i.e zero speed of circulation, there is no price inflation.
billyjoerob, isn't your entire post predicated on believing the official CPI numbers represent reality? If so, that's horseshit.
Interesting post. The one thing I take issue with is using one of the most well managed empires in history as the example. Sober men with common interests and strong family and social ties are not what our leaders are made of. Our guys do not say no very often. Ruling is more about saying no than yes. The British consol hovered around 2-4% from the death of Napoleon to WWI
The focus on "inflation" i.e. CPI, core CPI in fact is the mistake. Inflation IS the increase of the money in circulation , it causes asset inflation (such as house price inflation) which we are having now, just like in 2004-2007. It causes commodity prices to go up therefore causing food price hikes, that's inflation even if the Fed disregard it. The mainstream economists' concept of inflation is a sham, asset inflation is just as bad as their "inflation" because it causes booms and busts. Bernanke or rather Yellen are about to see the thing blow up in their face, just watch.
" blow up in their face," your remark is not even close to reality. bernanke, yellen and their friends will know how to hedge themselves.not only will they hedge themselves but they will make large fortunes out of their derelict actions. it is the middle class who will suffer the consequences of their dangerous actions.
in the mean time corporate america is grateful, as are shareholders. . <http://www.bloomberg.com/news/2013-...on-as-apple-to-verizon-borrow.html?cmpid=yhoo> is the party over?
Probably not as the fat lady has not yet sung. But she is rising from the couch and may be almost ready to warm up.
Surely they are but as governments are defaulting, pensions and things of that nature are going to be eliminated. There's also the issue of unions. We aren't seeing the inflation rise yet most likely because of deflationary pressures. Cars, consumer goods, etc. are all being replaced less and less frequently. Same goes for things like computers and even high-end grocery items. We'll probably see it creep in more soon due to the fact that less trading is being done in US dollars for things like commodities and what not. Our markets aren't as liquid nor are they as honest as they used to be. That eventually will play a factor in our monetary policy.
The OP needs to learn about money to have an understanding of inflation. Lots of kool-aid drinking 'traders' out here. Inflation is by definition the increase in money and credit. Inflation is definitely a monetary phenomenon. What else can it be? Go ask the people in Zimbabwe. Inflation needs time to play itself out. U.S. will eventually get inflation. We currently are not experiencing high inflation because certain forces are keeping it at bay. If you shop around, consumer staples are steadily going up.