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<p>[QUOTE=&quot;Cloudsweeper99, post: 1167360, member: 3011&quot;]It should be considered that high rates of inflation are not possible unless nominal GDP is rising rapidly along with national incomes.&nbsp; When it isn&#039;t, every increase in the price of one item is being offset by a decrease in the price or quantity of another.&nbsp; Without a rising nominal GDP, the general rise in the price level that constitutes inflation is not possible, particularly in a service economy.&nbsp; Also, large drops in the bond, stock, and housing markets are more a symptom of delfation than inflation.&nbsp; And the end of QE2 will be deflationary by definition. So it may turn out that Bernanke will be proven correct over time.&nbsp; The forces of inflation&nbsp; and deflation are still in a tug of war, and it isn&#039;t clear yet which will win, or even if stability returns.&nbsp; For every symptom of inflation, such as rising commodity prices, there is an offsetting symptom of deflation, such as falling real estate prices.&nbsp; Now I&#039;m certain that many folks will have a strong opinion one way or another, and if they are correct they will announce that they knew it all along, but all they are really doing is calling a coin flip correctly.&nbsp; Sorry, but that&#039;s just the way it is.[/QUOTE]</p><p><br /></p>

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