Could the Weimar Hyperinflation Happen Again in America?

[Technically Fundamental]

Do you not understand that this is the research Genics?

 

[N Rothschild]

Do you not understand that this is the research Genics?

 

[N Rothschild]

ben bernanke, today

WASHINGTON (Dow Jones)--As he defended the Federal Reserve's rescue efforts, U.S. Federal Reserve Chairman Ben
Bernanke on Tuesday said inflation concerns are misguided, and reiterated to lawmakers that central-bank policy makers
expect inflation to be subdued for the next two years.
"I think they're misguided in the sense that ... the Federal Reserve is able to draw those reserves out and raise
interest rates at an appropriate time to make sure that we don't have an inflation problem," Bernanke said in response
to a question posed during a House Financial Services Committee hearing about inflation worries.
He later added that the financial markets don't seem to be worried about inflation.
"I don't think the financial markets are indicating a great deal of concern about inflation," he said, pointing to
long-term Treasury rates that are still "quite low."
Furthermore, Bernanke defended the Fed's plans to purchase up to $300 billion in longer-term Treasury securities
against charges that the Fed is monetizing the debt and stoking inflation.
When those purchases are completed, the Fed will still have less Treasurys on its balance sheet than it did two years
ago, Bernanke said, adding that the Fed's share of outstanding Treasuries will be at one of the lowest points in the
postwar period.
"We are not taking a significant portion of U.S. Treasurys," Bernanke said.
Asked if the Fed is considering selling off some of the Treasurys it has purchased, Bernanke replied: "We don't have
any near-term plans to divest ourselves."
Bernanke added that inflation, which is a rise in consumer price levels, "is very stable right now" and the various
measures of monetary supply are not growing quickly.
"Let's be clear about what's going on - the Federal Reserve is not putting money out into the economy. What we're
doing is creating bank reserves. It's not chasing any goods," Bernanke said.
Rep. Bill Posey, R-Fla. - just like Texas Republican Rep. Ron Paul earlier - was unconvinced.
"It's going to cause inflation," Posey insisted.
Bernanke responded by laying out the various tools the Fed has for exiting its rescue programs, pointing out, for
instance, that the central bank now has the authority to raise interest rates paid on reserves.
He later added that the Fed is doing its best to address the ailing economy. "We're trying very hard to support the
economy," he said.
Turning to a discussion about the Fed's Term Asset-Backed Securities Loan Facility, Bernanke said that while the
amount loaned through the TALF program is lower than expected, he wouldn't say it's off to a slow start. "It has been
effective," the chairman said, adding that the program is helping the credit market.
"So I think we'll continue to focus on that instrument," Bernanke said, and even suggested that the program could be
expanded.
"We are looking at some alternative assets, but they are very complex once you get beyond the categories already
included," he said.

 

[N Rothschild]

you starting to grasp it yet wallstreethero?

 

[N Rothschild]

30yr bonds are up a full handle on bens comments, so i would say the market is agreeing with his outlook.

 

[poborsky]

ben bernanke, today


"I think they're misguided in the sense that ... the Federal Reserve is able to draw those reserves out and raise
interest rates at an appropriate time to make sure that we don't have an inflation problem," Bernanke said in response
to a question posed during a House Financial Services Committee hearing about inflation worries.
He later added that the financial markets don't seem to be worried about inflation.
"I don't think the financial markets are indicating a great deal of concern about inflation," he said, pointing to
long-term Treasury rates that are still "quite low."

Bernanke added that inflation, which is a rise in consumer price levels, "is very stable right now" and the various
measures of monetary supply are not growing quickly.
"Let's be clear about what's going on - the Federal Reserve is not putting money out into the economy. What we're
doing is creating bank reserves. It's not chasing any goods," Bernanke said.

The problem for the US is that control on interest rate policy has been partly taken out of their hands, because of the large amount of govt debt in foreign hands. They need to put a positive spin on everything to make sure that foreign investors will purchase huge amounts of debt at reasonable prices to keep interest rates down.

Its no surprise that money is not chasing goods at the moment because unemployment is rising and people that are working are trying to pay down debt.

Real inflation is running at high levels at the moment. Govt inflation figures are complete and utter nonsense, as are the GDP figures. If true figures were published then they would show that the USA is now in a period of inflationary depression.

 

[N Rothschild]

and your evidence for this high running inflation?

 

[poborsky]

and your evidence for this high running inflation?

Inflation, Money Supply, GDP, Unemployment and the Dollar - Alternate Data Series

 

[Atilla]

and your evidence for this high running inflation?

Genics dear fellow hear is one you...

Have a read of this piece of news which I listened to live on Reuters and which caused me to fall of mi chair... :cheesy:

BBC NEWS | Business | Fed warns of $100bn credit losses


Please note that was July 2007. Two years ago. We are talking facts here not projections or guestimates call it what you will - research even... :cheesy:

Now project the % margin of error and work out from what uncle Ben has fed the markets and work out what he is really telling you.

Reason why the DOW went to 14050 despite the **** news is precisely because the Fed kept feeding BS to the market. $100bn - go figure...

imo poborsky is obviously a disciple of economics and I'd much rather consider his analysis and perspective then men in suits feeding fund managers and media paymasters.

At the end of the day - don't trade on news but pure technical charts. Reason being the news is all BS.


PS, Ben getting the sub-prime crises wrong doesn't necessarily mean he'll be wrong about inflation but cards are stacked against his whishy washy statement imho.whishy

 

[N Rothschild]

Genics dear fellow hear is one you...

Have a read of this piece of news which I listened to live on Reuters and which caused me to fall of mi chair... :cheesy:

BBC NEWS | Business | Fed warns of $100bn credit losses


Please note that was July 2007. Two years ago. We are talking facts here not projections or guestimates call it what you will - research even... :cheesy:

Now project the % margin of error and work out from what uncle Ben has fed the markets and work out what he is really telling you.

Reason why the DOW went to 14050 despite the **** news is precisely because the Fed kept feeding BS to the market. $100bn - go figure...

imo poborsky is obviously a disciple of economics and I'd much rather consider his analysis and perspective then men in suits feeding fund managers and media paymasters.

At the end of the day - don't trade on news but pure technical charts. Reason being the news is all BS.


PS, Ben getting the sub-prime crises wrong doesn't necessarily mean he'll be wrong about inflation but cards are stacked against his whishy washy statement imho.whishy

is that because it goes along with your opinion?

yes poborksy is clearly the most knowledgeable here..all hail

 

[N Rothschild]

well that fairly backs up what i have said re we have already seen huge inflation..and look where it is now.

so this "high running inflation" is 6% from your source..which is over half that of last year... that's some impressive disinflation..im getting bored of this.

and for the millionth time just because the money supply is growing doesn't mean it is reaching the consumer and chasing goods (which is that causes the inflation)

 

[N Rothschild]

i think some of you underestimate the era of inflation and credit creation that has come to an end..the fed buying government notes is just a small aprt of money creation..

as shown by poborskys lovely data of 12% inflation

 

[N Rothschild]

sorry aparantly ive been "knocked out" of this thread... cant post anything more

 

[N Rothschild]

The problem for the US is that control on interest rate policy has been partly taken out of their hands, because of the large amount of govt debt in foreign hands. They need to put a positive spin on everything to make sure that foreign investors will purchase huge amounts of debt at reasonable prices to keep interest rates down.

Its no surprise that money is not chasing goods at the moment because unemployment is rising and people that are working are trying to pay down debt.

Real inflation is running at high levels at the moment. Govt inflation figures are complete and utter nonsense, as are the GDP figures. If true figures were published then they would show that the USA is now in a period of inflationary depression.

"Its no surprise that money is not chasing goods at the moment because unemployment is rising and people that are working are trying to pay down debt." and what does that cause...deflation is it?

 

[WallStreetHero]

No I said...

Stop chopping down statements to suit and prolong your arguments.

Also, you aren't a great economist.

You have yet to reveal a basis for your argument I the whole of these 12 miserable pages. You went from saying Zimbabwe style inflation, to normal inflation, to laughing at people who say deflation as though the theory has no foundation. I don't know what the hell internet news channel you're watching and what books you've read but I'd advise you to open your mind and be a bit more flexible in your opinion on things you don't fully understand or you run the risk of looking like an idiot.

its not me chopping down statments its you chopping down and twisting my statements to suit your arguement , please point out to me where i have said there will be normal inflation?
stop being an idiot and read the comments properly before making things up and replying to them to suit yourself.

 

[WallStreetHero]

well thank you for proving your a moron and shouldn't actually be involved in this discussion. good day sir.

ye right thats why i am now going into other topics to take cheap shots just cause i ripped your **** here.

you are now looking like a 5 year old child ranting, sitting all day on the net wont do anything, i guess thats where you are getting your absurd statments from.

i dnt think theres a time where you have been offline here
you prooved long ago you shouldnt be in this discussion with your absolute ridiculous statments.

 

[N Rothschild]

yeh imagine that, being a trader and being at a pc most of the day...shocking behaviour!

and what statements have i made that are "ridiculous"? care to quote one? or you just throwing random insults...

 

[WallStreetHero]

sorry aparantly ive been "knocked out" of this thread... cant post anything more

well atleast you admit it, now what are you gona do, start ranting at everyone else from this thread in other threads

 

[N Rothschild]

the fact you think there cant be a depresion and deflation shows to anyone with half a brain you dont actually have a clue..

 

[WallStreetHero]

30yr bonds are up a full handle on bens comments, so i would say the market is agreeing with his outlook.

what a great economist you are, you must be einstein.

absolutely hillarious.