bobbyw24
11-12-2010, 05:37 AM
TIME Magazine Pulls A Lefty
Now this is the definition of obscenity - and ridiculous besides.
Turns outs that it is very unlikely the Fed would cause hyper-inflation. That's why near zero interest rates and the Fed's early efforts to drive down long-term interest rates have done little to boost inflation. The real threat of inflation comes from tax policy, namely lower taxes. Lower taxes and the government will have a harder time paying back its debt. Investors run from our bonds and currency. Inflation ensues.
Someone's got cause and effect backward.
Bond prices are not "inflation." Inflation (or the threat thereof) causes bond prices to fall and rates to rise.
Stephen really shouldn't write about a subject he clearly doesn't understand.
The extension of credit always comes with interest. Interest is defined as:
http://market-ticker.org/akcs-www?post=171976
Now this is the definition of obscenity - and ridiculous besides.
Turns outs that it is very unlikely the Fed would cause hyper-inflation. That's why near zero interest rates and the Fed's early efforts to drive down long-term interest rates have done little to boost inflation. The real threat of inflation comes from tax policy, namely lower taxes. Lower taxes and the government will have a harder time paying back its debt. Investors run from our bonds and currency. Inflation ensues.
Someone's got cause and effect backward.
Bond prices are not "inflation." Inflation (or the threat thereof) causes bond prices to fall and rates to rise.
Stephen really shouldn't write about a subject he clearly doesn't understand.
The extension of credit always comes with interest. Interest is defined as:
http://market-ticker.org/akcs-www?post=171976