inflation is an increase in the money supply +an increase in the velocity of money. you can print all the money you want and if people don't spend it or hoard it under their mattress, for whatever reason, there is no inflation. if people don't trust the future of a country and its government (perhaps a future wealth tax or vat increase or war etc. etc.) even a small increase in money supply will lead to inflation.
it is a centuries old argument between those who believe in a hard currency and a soft currency. on the left they believe in a soft currency to extinguish the debt of the masses.
Why should I waste ET resources repeating what MAV has already said about this post. I want both the poster and you to know that MAV is not the only one that disagrees with this wrong post. That's all that need be said.
Piezoe is now Mav's political spokesperson. All that's missing is "I'm Maverick, and I approve of this message."
everybody can find at least one other person who disagrees with a post. any post that includes the words I don't where to begin usually fails to provide the where to persuade others of their opinion. is it lassitude or just being intrinsically condescending? since you are of the same school you will certainly be understanding of his attitude even if you are not always his confirming mouthpiece.
I still go back to the concept that the Fed is fighting battles that it created with prior reckless policy...The targeted creation of asset bubbles (let's not even pretend that they haven't been doing this) leads to these "deflationary bouts" once the bubbles deflate and the economy goes into recession...as a result, the Fed always has a valid excuse for their next round of overly loose monetary policy...when this loose monetary policy doesn't "stimulate" the economy sufficiently, it's time for even more "unconventional" measures...all of this to fight problems that are of their own making...
these are not unconventional methods by the Fed.. it is used routinely by second and third world countries like argentina and brazil etc. it is used by first world countries when they run out of money to pay for their socialist agendas.