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<p>[QUOTE=&quot;InfleXion, post: 1795343, member: 29012&quot;]Price inflation and monetary inflation need to be distinguished. I am not sure which was being referred to, but any time the word &#039;inflation&#039; is used it should be quantified or it could be a source of confusion.</p><p><br /></p><p>Monetary inflation is most certainly occurring. Monetary inflation increases potential for monetary velocity. Increasing monetary velocity causes price inflation. Due to massive amounts of QE being used to shore up banking balance sheets and lying dormant the velocity of money has actually decreased in recent years, but the potential has vastly increased.</p><p><br /></p><p>Inevitably monetary velocity will eventually increase unless those QE dollars are destroyed, but that would only be viable if the equivalent amount of QE dollars is made in profit for banking surplus so that they can afford to give it up. Further exacerbating the situation is that the debt-based dollars created from thin air are largely used to buy debt-based bonds (which are also dollars) so there is a compounding debt effect. Unwinding is not very likely, so then more likely is the waiting game they will extend as long as possible.[/QUOTE]</p><p><br /></p>

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