Reference of Japan finally inspired me to do this. I gave it its own thread, but felt it might deserve a paste here (how's that for shameless self promotion) [Well was that really shameless? If I had no shame, I would not have disclaimed my shamelessness].
Curves like the one you posted , Scria, worry me. Other curves will need to also respond sharply to that impulse of money. Which curves and how we will probably see by the end of the year.
I am. The US doesnt have any control over the foreign entity but they have over the US citizen who is controling/investing in the corporation. Passive income and income derived from capital gains are subject to US income tax without allowing for deferring taxes http://en.wikipedia.org/wiki/Passive_foreign_investment_company
HAHAHAHAHAHAHAHAHAHAHAHA! A guy with the wisdom and experience of Faber should not be making such statements. While US can be under threat of inflation even HIGH INFLATION but it can never never never reach the levels of Zimbabwe, or Argentina or Brazil and other nations that have been famous for economic slumps time and again. WHY??????????????? because US runs the world economy because US is not under any kinds of sanctions and economic blockade because US has enough economic tools, measures and pull/push in the world economy to trigger stablizing measures because US can walk away from all its debt and no one can do anything about it because US can starting charging nations like Japan, S. Korea, Western Europe 100s of Billions for protecting them from the Commiees, Fascists and other Pyshopathic 'fast and slow' killers of the human race. hope that makes the matters a little clear. Furthermore, if US can find ways to save and redirect $500B a year to debt servicing and paying off, then in 15 years US financial sheets will be in black again. $500B savings will be tough but are very very possible and US people are very capable of such expedition and coming out victorious. Cheers and God Bless All!
Actually agreed. US has too much productive capacity, military power, etc. to turn into anything close to zimbabwe. But 100% inflation over a few year period is not out of the cards... That is just a price adjustment to compensate for changes in outstanding money supply (when velocity picks up).
The $ dropped 100% against the euro last decade. 400% against gold. 1000% against oil? Perhaps we should decide on the definition of high inflation first before we can discuss if it is in the cards or not.