Sigh How the fuck are us crude oil position traders meant to be able to trade with the economy so mixed like this!!
The inflation already happened. The wealth was already created during the housing bubble, and with leveraged investments. Now they are just scrambling to keep all the virtual wealth from disappearing.
Wow....that simple sentence nails it. I would also like to add: Outsourcing has kept inflation in check (or masked) to a great extent for consumer goods. Whereas stocks and homes' valuations were extremely inflated with no income/earnings basis to support the valuations.
Remember that out of $10T debt only maximum $3T is held by the Chinese, British and others. $7T is held by the domestic US citizens and corporations. Fed is bailing out the whole financial mess by printing dollars, this can cause dollar to lose value and erode the debts. Hopefully this happens only slowly and not as a shock as that can be chaotic.
Echo the sentiments. Unfortunately we also hoped that the Morgtage marked would unwind slowly.. I think the runs to the exits on U.S debt is starting. Japan and China do not want to be last on the creditor list.
The lights are already turned off .. and they're blocking the exits --- fire-sale is starting? Getting rid of creditors. :eek:
100% chance of hyper inflation within 20yrs see: http://peakoil.com/ http://www.chrismartenson.com/future_shock
Nobody may want deflation but it will eventually come, it's just a question of how deep it will be when it arrives, and that, as everyone should know, is dependant on the level of inflation that preceded it. Just look at how the German economy collapsed and their unemployment rate soared after their hyperinflation ended in November 1923. "There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved." Ludwig von Mises
ha ha ... anyone got some of these ? http://ylwong.files.wordpress.com/2008/04/zimbabwe-zim-currency-slide.jpg