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<p>[QUOTE=&quot;Argento, post: 581575, member: 17165&quot;]This thread is getting a little too conspiracy theory for my tastes so this will be my last post in this thread because there are a few points being lost.</p><p>Eddie has the most accurate technical definition of inflation.&nbsp; To answer the question about why all of this money hasn&#039;t sparked inflationary moves is also pretty simple.&nbsp; The reason inflation hasn&#039;t hit yet, but most certainly will (again, don&#039;t panic as there are powers at play with a keen interest on keeping inflation in check), is because the funds we&#039;re all expecting to hit are still in a state of limbo.</p><p><br /></p><p>First off the bailout money, intended to help resume the flow of credit, has instead remained parked on bank balance sheets as a ballast to the imperial truckload of bad debt the bailed out bank recipients are holding.&nbsp; Consequently, that money is not a functional part of the economy as it remains to be injected into the system.&nbsp; This scenario could persist indefinitely as there really is no telling when banks can recapitalize enough to resume credit.&nbsp; The mortgage issues still outstanding -- and threatening the balance sheets of banks -- will have to be resolved before they can capitalize enough to offset the bad debt AND get back to healthy lending.&nbsp; Expect banks to continue the hoarding until this can be resolved -- not to mention a certain degree of threat to the overall economy.</p><p><br /></p><p>Secondly, the stimulus money is, for all intents and purposes, mired in state and local bureaucracies as everyone determines the best allocation methods.&nbsp; This is, of course, a temporary situation due to the raw amount of stipulations attached to acceptance of the money.&nbsp; Governments that have accepted stimulus cash have also accepted the conditions that it be spent according to certain conditions and time frames.&nbsp; This stimulus money will most likely represent the first blip on the inflation radar as it will be hitting the system relatively soon.</p><p>Now, to elaborate a little more on my previous post.&nbsp; I&#039;ve already explained why the &quot;powers that be&quot; won&#039;t allow inflation to go all Zimbabwe on us but I would like to speculate a little bit on how they might achieve this in the face of something as powerful as the doubling of the money supply.&nbsp; Vess is absolutely right in that no one group has total control of the economy, to suggest otherwise is absurd.&nbsp; However, one doesn&#039;t need to control the entire economy if one has control over the most important levers such as credit and money supply.&nbsp; Considering the importance of credit to the US economy, is it all that difficult to understand how much control is wielded by those who control both credit and the money supply?&nbsp; To suggest that this situation does not give the Fed, and the banking system in general, enormous power over the economy is also absurd.&nbsp; If you control credit and money supply, you have a tremendous amount of leverage with which to move the economy as you wish.&nbsp; It is through the manipulation of those two mechanisms that inflation will be kept in check.&nbsp; Sure there will be inflation, for sure, but inflation overrunning the economy ala Germany post-WWI or current day Zimbabwe?&nbsp; Don&#039;t count on it.</p><p><br /></p><p>Last but not least, this is a coin collecting forum.&nbsp; Even I won&#039;t believe in my own theories 100% until they come to pass.[/QUOTE]</p><p><br /></p>

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