Should we be worried about inflation?

[Bman]

YouTube - Monetary Flat-Spin (http://www.youtube.com/watch?v=4VkD2ZOMplk)

The video is a bit lengthy but I was wondering if someone better educated on economics than myself could comment on this.

[hugolp]

Yes, prices will fall IF the money multiplier stays low. But it will not stay low forever.

Also, what the article does not say is that there are more ways to make prices rise than through banks lending. In fact, its happening in the US, Bernanke is monetizing the debt, thus increasing the circulating money (not only the theoretical money suply, but the circulating one), rising prices.

There has never been an example on the whole history of modern economics that a goverment has not been able to stop falling prices (if it wanted to). I believe it should not, but it can if it wants. Japan got a small price decline but not because of the crisis, but because it opened its trade to China importing cheap goods, wich obviously drove prices down, wich was a good thing and stimulated the consumption (it did not stop it like the deflation spiral advocates say).

PD: Economic mathematical models fail. Mathematics are exact, but the model can be wrong. Dont buy that mathematics dont lie bullshit.

[acptulsa]

I can't watch the video right now to comment on it, but we should be more than worried about inflation. We should be hedged against it in every way we can find.

The Chinese own huge amounts of our debt. If they sell our debt cheap, the market for T bills will crash from oversupply. This will ruin our credit, and the value of the dollar is basically based on our credit rating. This stands a chance of turning the FRN to toilet paper and you know that if that happens the Fed will take care of itself first and to hell with us.

Now then, you tell me. Should we be worried about inflation?

[Bman]

I can't watch the video right now to comment on it, but we should be more than worried about inflation. We should be hedged against it in every way we can find.

The Chinese own huge amounts of our debt. If they sell our debt cheap, the market for T bills will crash from oversupply. This will ruin our credit, and the value of the dollar is basically based on our credit rating. This stands a chance of turning the FRN to toilet paper and you know that if that happens the Fed will take care of itself first and to hell with us.

Now then, you tell me. Should we be worried about inflation?

Personally, I've been very worried about inflation. As a matter of fact in this whole thing it is my main concern. This video just presented something I had not heard before. I really have a small education on overall economics. Just looking for clarity.