There have been many threads on the imminent threat of inflation looming in the US due to Bernanke's game of "test your might" with the USD digital printing press but what I don't understand is if:
a) Doesn't repaid TARP instantly come off of the M3 and return to the nothingness from whence it came? If so, the the only money really created/given to banks in the bail out is the yield on the treasury bonds the banks bought up...*headache*
b) Wouldn't the whole sub prime mess mean HUGE write downs and again decrease the M3 from 2007-8 levels
c) Unemployment should erode savings...
d) Hasn't a significant portion of US GDP been destroyed through collapsed banks and sell-offs to other countries etc... (5.7% lol)
e) Interest rates have nowhere to go but up
![Confused :confused: :confused:](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
Where does inflation fit in to all of this?
I know I don't really know my stuff here but I'm still interested
a) Doesn't repaid TARP instantly come off of the M3 and return to the nothingness from whence it came? If so, the the only money really created/given to banks in the bail out is the yield on the treasury bonds the banks bought up...*headache*
b) Wouldn't the whole sub prime mess mean HUGE write downs and again decrease the M3 from 2007-8 levels
c) Unemployment should erode savings...
d) Hasn't a significant portion of US GDP been destroyed through collapsed banks and sell-offs to other countries etc... (5.7% lol)
e) Interest rates have nowhere to go but up
Where does inflation fit in to all of this?
I know I don't really know my stuff here but I'm still interested