How is it possible to print money like hell and cause no inflation

A simple look at food prices will show you where a lot of the inflation is.

 

try to keep in mind that inflation is only when all prices rise together. more money being produced then total goods and services. pointing out that one particularity industry is inflating is not inflation. it could be do to increased taxes or land prices or other. It's a common mistake especially on ET

 

+1

 

Low velocity. A decrease in velocity of x% is the same as a drop in the monetary base by x%.

 

The money is being teleported into the sun. Apparently we owe it money too.

 

They are absolutely correct. The velocity of money is still decreasing.

This is a chart of the total consumer credit outstanding through 02/28/2010.

Consumers are still decreasing their credit lines and living in their means, a tiny bit more, but it appears to be a trend that may continue.

Here's a view of the consumer revolving credit owned by commercial banks, which is included in the data above, but in this graph that data is presented separately through 02/28/2010.


Here is a view of total consumer loans owned by commercial banks, which is also included in the data from the first graph, through 02/28/2010.


This is the data for real retail sales and food service sales through 03/01/2010

While it has been rising lately it is still well below its high.

And finally this is the data for savings deposits through 03/01/2010. I wanted to post personal savings rate but can't find anything that has been updated since 10/2009.


Bottom line is that consumers are spending less and banks are lending less and savings are increasing. It is impossible to inflate if money does not start flowing out faster than it is printed. The time will come, but it's not here yet.

 

Good thread guys.

It's my belief too, that the money that's being created is going to banks, and then right into the Stock Market. It's hardly making it's way into to main street where unemployment is out of control. I'm sure I'm being overly-simplistic.

 

Since 75% of US dollars are overseas, whatever FED prints will be absorbed easily since the world economy including China is growing way faster than US Economy.

One day, they will wake up and start using their own currency instead of USD and that will be collapse of US.

 

First define inflation.

 

Simple and excellent explanation. Everyone is saying "free money, free money" but banks are not lending. Their standards are as strict as ever so the availability of $$ is just not there for the economy. I have numerous friends with small businesses and they are surely not seeing the money that is being pumped to the banks.