[quote=AN][quote=Arraya]If this was a movie it would be titled “desperately seeking inflation” I don’t think inflation can easily be metered out when fighting the strongest deflationary pressures in history. If your paying attention they are trying like hell to inflate.[/quote]
I tend to side with the rule maker in the long run. If they want inflation, they can create inflation. They seem to be trying to create inflation at a manageable rate. But if they want, they can start printing quadrillion of $ and give out tax credit like there’s no tomorrow. That would be more than enough to create hyperinflation. In another word, they’re not trying very hard to create inflation. They could do much much much more to create inflation.[/quote]

If they want Inflation, Interest rates will also
rise in nominal terms.

So lets say we have 100% annual inflation, High but
not Psycho high. What happens, all those Option ARMS and IO loans in California that are still good?
DO they stay good?

Who wants to buy a house with a 140% mortgage?

And don’t think we won’t see rates rise, we are a creditor nation, the chinese don’t want to see their Trillion wiped out.

We are far more likely to end up in Stagflation then
Hyper INflation.