Here is an explanation I've heard as to why the colossal increase in the money supply will not cause inflation. "This time is different." A different vehicle was used to bring about the gargantuan increase in the money supply, and because of the nature of the vehicle that was used this time, it can be quickly undone, when the economy begins to heat up again. Someone on CNBC offered that explanation. He did not elaborate. I'm extremely pessimistic. Has anyone else heard this? If so, I'd like some follow-up on it.
Anybody who says "Printing more fiat paper money is not inflationary!" is a complete idiot and should not be taken seriously.
I don't take anyone on the Communism Channel (CNBC) seriously. It's just an elaborate comedy sketch.
I have my own blog at FSK's Guide to Reality. Let me know if you like it.
I think what they were talking about is a large sum of the money sent to different institutions (Freddie and Fannie in particular) are being held in reserve, and not just put out into circulation. Theoretically that money can just be sent back to the Fed Reserve and be destroyed thus taking it out of circulation and not increasing inflation. The problem is if that money does get circulated then we will have hyper inflation quickly, and I would bet at least some has made its way into circulation already.
This is about timing and holding as much of the flood of money sent to the different institutions as possible. I cannot wait to get my first million dollar bill to buy some bread.
That IS the cool thing about hyperinflation. Everyone get's to know what it feels like to be a billionaire.
The Rev
Lifes a piece of shit, when you look at it
Life's a laugh and death's a joke, it's true
Just remember it's all a show, keep em laughing as you go
Just remember that the last laugh is on you