Deflation is winning

[sdduuuude]

[quote=kewp]Then, the actual Tsunami hits (inflation) as people are standing there on what used to be dry ground.

I’ve heard this analogy a couple times and I’m not sure what mechanism could cause an ‘Inflation Tsunami’.[/quote]

I suspect it would be an overreaction of pumping money into the system. By the time they stop pumping money, the pendulum is swinging the other way.

[sdduuuude]

Read somewhere that Japan entered their period of deflation with net savings. We enter ours in debt.

[sdduuuude]

Read somewhere that Japan entered their period of deflation with net savings. We enter ours in debt.

[sdduuuude]

Read somewhere that Japan entered their period of deflation with net savings. We enter ours in debt.

[sdduuuude]

Read somewhere that Japan entered their period of deflation with net savings. We enter ours in debt.

[sdduuuude]

Read somewhere that Japan entered their period of deflation with net savings. We enter ours in debt.

[kewp]

[quote=sdduuuude]
I suspect it would be an overreaction of pumping money into the system. By the time they stop pumping money, the pendulum is swinging the other way.[/quote]

We’ll only see price/salary inflation if it moves into the economy.

If all the new money is just replacing old money, or the literal equivalent of being stuffed in a mattress, its a wash.

[kewp]

[quote=sdduuuude]
I suspect it would be an overreaction of pumping money into the system. By the time they stop pumping money, the pendulum is swinging the other way.[/quote]

We’ll only see price/salary inflation if it moves into the economy.

If all the new money is just replacing old money, or the literal equivalent of being stuffed in a mattress, its a wash.

[kewp]

[quote=sdduuuude]
I suspect it would be an overreaction of pumping money into the system. By the time they stop pumping money, the pendulum is swinging the other way.[/quote]

We’ll only see price/salary inflation if it moves into the economy.

If all the new money is just replacing old money, or the literal equivalent of being stuffed in a mattress, its a wash.

[kewp]

[quote=sdduuuude]
I suspect it would be an overreaction of pumping money into the system. By the time they stop pumping money, the pendulum is swinging the other way.[/quote]

We’ll only see price/salary inflation if it moves into the economy.

If all the new money is just replacing old money, or the literal equivalent of being stuffed in a mattress, its a wash.

[kewp]

[quote=sdduuuude]
I suspect it would be an overreaction of pumping money into the system. By the time they stop pumping money, the pendulum is swinging the other way.[/quote]

We’ll only see price/salary inflation if it moves into the economy.

If all the new money is just replacing old money, or the literal equivalent of being stuffed in a mattress, its a wash.

[barnaby33]

The dollar’s strength is likely temporary, as bad news will continue to emerge from the U.S. economy, and the Fed and Treasury will support a weakened dollar in order to prop up our export economy. The current situation seems unsustainable.

Fearful, all things are temporary care to hazard a guess? As to the unwinding of the carry, that is a knock on effect of the deflation. The Japanese have sustained enough losses that they are saying no mas. That currency is being repatriated yes, or rather parts of it are. I suspect that many of the Japanese banks that have been doing this are sustaining losses though which chills lending, which shrinks the money supply. Though I say up front I have no proof or insight.
Josh

[barnaby33]

The dollar’s strength is likely temporary, as bad news will continue to emerge from the U.S. economy, and the Fed and Treasury will support a weakened dollar in order to prop up our export economy. The current situation seems unsustainable.

Fearful, all things are temporary care to hazard a guess? As to the unwinding of the carry, that is a knock on effect of the deflation. The Japanese have sustained enough losses that they are saying no mas. That currency is being repatriated yes, or rather parts of it are. I suspect that many of the Japanese banks that have been doing this are sustaining losses though which chills lending, which shrinks the money supply. Though I say up front I have no proof or insight.
Josh

[barnaby33]

The dollar’s strength is likely temporary, as bad news will continue to emerge from the U.S. economy, and the Fed and Treasury will support a weakened dollar in order to prop up our export economy. The current situation seems unsustainable.

Fearful, all things are temporary care to hazard a guess? As to the unwinding of the carry, that is a knock on effect of the deflation. The Japanese have sustained enough losses that they are saying no mas. That currency is being repatriated yes, or rather parts of it are. I suspect that many of the Japanese banks that have been doing this are sustaining losses though which chills lending, which shrinks the money supply. Though I say up front I have no proof or insight.
Josh

[barnaby33]

The dollar’s strength is likely temporary, as bad news will continue to emerge from the U.S. economy, and the Fed and Treasury will support a weakened dollar in order to prop up our export economy. The current situation seems unsustainable.

Fearful, all things are temporary care to hazard a guess? As to the unwinding of the carry, that is a knock on effect of the deflation. The Japanese have sustained enough losses that they are saying no mas. That currency is being repatriated yes, or rather parts of it are. I suspect that many of the Japanese banks that have been doing this are sustaining losses though which chills lending, which shrinks the money supply. Though I say up front I have no proof or insight.
Josh

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