The bond market is pricing in inflation of 1 or 2% a year for the next 10 or 30 years. Yet every repub and every free market person predicts a catastrophic rise in inflation and interest rates. Who knows better? Paul Derose, Bill Gross, and Zachar and the thousands that at the margin adjust prices every day based on the expected future events, and their desire and past ability to make a profit, or the free market groups. What a waste of energy it is to concentrate on this red herring rather than the slavery.

John de Regt comments:

The way I see it, either this massive govt intervention is the new new, or supply and demand will kick in, and interest rates will go up. All the western governments have discovered the magic elixir of QE, and either it will end, or it won't…





Speak your mind

7 Comments so far

  1. russell thomas on January 17, 2013 6:20 pm

    I am by no means knowledgeable on the subject of money printing and all its various guises. It seems to have become an accepted practice by many of the biggest economies around the world. USA, EU,Japan,UK are examples. What im getting at is the mindset of individuals,commissions and governments, it just seems to be the norm now ?. If its such a great thing to do why have these economies not encouraged its use in the past? I always thought only tin pot nations printed money?

  2. Alex on January 17, 2013 6:32 pm

    The Fed will keep inflation under control. Why would the rates be higher than they have been in the past. The quadrupling of the price of oil hasn’t done much to inflation rate year over year. Choose your investment wisely to keep up with the inflation rate.

  3. Sanjay Kohli on January 17, 2013 7:49 pm

    Maybe the internet is the new paradigm in inflation control with the flattening of the supply chains globally. Coupled with the emergence of the Central Limit Order Book (CLOB) and just an explosion of the number of traded securities all over the world that the additional deficit financing is getting absorbed in assets which don’t form part of inflation indices.

  4. John on January 17, 2013 9:27 pm

    Chair, do me a kindness and please help me better understand what you mean by “What a waste of energy it is to concentrate on this red herring rather than the slavery.” Also, if you have not seen the film “Winnebago Man” I recommend it.

  5. Victor on January 17, 2013 11:51 pm

    What is the bond volume like? Is it a low volume situation where buyers and sellers can’t agree?

  6. Astro the Family Dog on January 18, 2013 12:43 pm

    Not sure about all the bailout money, but I bet you could have given every American a million or so. ….330 million population about.

    And, then just allow them to run thier own into the ground instead of allowing others do so.

    Media, Funds (the mega types) are all not money makers they are just ‘extensions’ of the power base built over the decades and are the ‘arms of government’ itself.

    Profit are not important to government because the money (taxes) will always roll in, one way or the other, churn the machine has always been the name of the game, and always will be.

    Inflation,Deflation are all just things to buzz around to churn it some more.

  7. pat on January 19, 2013 2:00 pm

    We assume that there are these people on the margins adjusting prices everyday. However, the only thing these people are adjusting is the oscillation in prices while the mandarins in DC set the trend.


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