Hyperinflation Inevitable for USA

[NoDrama]

^^^^^^Of course they will, inflation is the only politically acceptable option. They have already blown their wad with every other tool and it has not helped for more than a temporary period.

 

[beardo]

I think it's worth pointing out that we are now experiencing disinflation.

Where i'm from....America we call that deflation, We are not experiencing deflation of anything here, cost of living to wages earned keeps rising. Food prices have risen and wages have remained stagnant.

 

[mame]

Where i'm from....America we call that deflation, We are not experiencing deflation of anything here, cost of living to wages earned keeps rising. Food prices have risen and wages have remained stagnant.

Again, disinflation and deflation are two different terms.

 

[beardo]

Again, disinflation and deflation are two different terms.

I learned a new word today, thanks.
Your probably right about us experiencing a time of disinflation right now

 

[mame]

Glad I helped.

 

[NoDrama]

Less than 1% growth, but Monthly food and energy price increases of 3-4%. Something says Inflation to me. People will be getting out of stocks and putting all their money into Commodities, that ought to make the situation worse.

 

[mame]

This is their forcast:

We have lowered our growth forecast further and now expect real GDP to increase just 2%-2½% (annualized) through the end of 2012. Since this pace is slightly below the US economy’s potential, we now expect the unemployment rate to be at 9¼% by the end of 2012, slightly above the current level.

We now see a one-in-three risk of renewed recession, for three main reasons. First, a worsening of the European financial crisis would hurt the economic outlook globally. Second, our forecast assumes that the payroll tax cut is extended for another year; if that failed to happen the fiscal drag in early 2012 would rise significantly. Third, the unemployment rate has increased in recent months, and such increases have historically had a tendency to feed on themselves.

Our inflation forecasts have not changed much, but our conviction has increased that the large—and now growing—output gap will result in significant renewed disinflation. Nominal wages are growing at a 2% rate, unit labor costs are roughly flat, and the temporary inflation impulse from higher commodity prices and the supply chain disruptions in the auto sector is waning. We expect the year-on-year rate of core inflation to fall from a peak of around 2% in late 2011 to 1¼% in late 2012.

Although, I misstated the year we'll hit 1%(2012, not 2011) - I cant remember where (I think it was this thread anyway) - so I want to point that out as well; I was pulling the number from memory at the time.

 

[NoDrama]

Core inflation will be 1%, but energy and commodities will skyrocket as people see where the safest place to put their money is. You seem to forget sometimes that its not easy to park $4 billion in any old asset and be fairly certain you are not taking a whole lot of risk. Plenty of Hedge funds, pensions, you name it that have to find ways to at the minimum try and save all the purchasing power they possibly can. They will buy commodities/energy and Precious Metals. People will want to eat before they will want to take a exotic vacation or trade in a used car for a new one.

Gold is up, what? $50 today?

 

[ink the world]

Im getting old, the house is just about paid off, theres money in the bank and more in holes on the property.....the garden got a big expansion this year and were prepping more space for next season.....got shares in 4 cows and 6 pigs and will have some more chickens next spring.

It can all fall apart now, my family is all set.

 

[budsmoker87]

they're not BRILLIANT cuz they come from goldman sachs mame


they're the guys who run the mafia from the inside...insider information makes them BRILLIANT?


they're financial terrorists. lloyd blankfein, paulsen, ALL of em are from goldman sachs and all of them continuously rob the public.... remember when paulsen said he wanted $200 million of the bailout money? they're fuckin thieves, they have no moral highground