Message:

<p>[QUOTE=&quot;fatima, post: 1534852, member: 22143&quot;]The Federal Reserve has moved into uncharted territory so this guess is as good as any.&nbsp;&nbsp; </p><p><br /></p><p>The problem the Fed faces is that its attempt to stimulate the economy by dropping interest rates to 0% has failed and in fact it&#039;s quite punishing to anyone with real cash, people not getting raises, people on fixed incomes, etc etc etc.&nbsp; It&#039;s causing all of them to cut back on spending which has quite the opposite effect of what they hoped for.&nbsp;&nbsp; QE unfortunately is nothing more than an attempt to create a situation that is equivalent to negative interest.&nbsp; </p><p><br /></p><p>There is absolutely huge and unprecedented &quot;base money monetary inflation&quot; (my, that&#039;s a mouth full) but it remains to be seen&nbsp; what this will result to in the real world.&nbsp; What you guys have been discussing with hyperinflation is really &quot;money supply monetary inflation&quot; aka price inflation and while conventional thinking is the former will lead to latter, because of the effect that I mentioned above, the spending required to support it may never materialize.&nbsp;&nbsp; You can lead a mule to the watering hole, but he will only drink so much water no matter what you do to get him to drink more.&nbsp; &nbsp; He might even, unexpectedly, kick you hard a few times if you try.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in