Ben Bernanke is a Huge Lunatic Paranoid Money Printer -MegaInflation Coming

Daal · Jan 12, 2009

I created a blog to help my trading, I normally think of blogs as time wasting garbage created by attention seeking juveniles but I found out that forcing yourself to writedown your ideas, trades gets you to revise your theories and either reject them or have more confidence on them leading you to make more money, it certainly was like that for me in 2008

If would appreciate if anyone has a comment(specially a disagreement) about my thesis that Bernanke is about to grandfather the biggest commodity bull market in a century and how we can all profit from it

PM user for blog site.

RiceRocket · Jan 12, 2009

It's going to take this mega-printing just to offset the loss of paper wealth in the world we've seen in the past 2 years. Then, once things are re-flated to where they were, it will take another round of printing to create any new inflation.

I think some of these hyperinflation fears come from people who don't really have a grasp on how much wealth has evaporated recently. Even if the wealth was paper wealth, it still affects everyone's bottom line.

drsteph · Jan 12, 2009

Quote from RiceRocket:

It's going to take this mega-printing just to offset the loss of paper wealth in the world we've seen in the past 2 years. Then, once things are re-flated to where they were, it will take another round of printing to create any new inflation.

I think some of these hyperinflation fears come from people who don't really have a grasp on how much wealth has evaporated recently. Even if the wealth was paper wealth, it still affects everyone's bottom line.

As a weimar-wanna be at times, I am surprised to find myself agreeing with you. But this time it is different - someone screwed up and upset the apple cart but good.

stock_trad3r · Jan 12, 2009

Quote from Daal:

I created a blog to help my trading, I normally think of blogs as time wasting garbage created by attention seeking juveniles but I found out that forcing yourself to writedown your ideas, trades gets you to revise your theories and either reject them or have more confidence on them leading you to make more money, it certainly was like that for me in 2008

If would appreciate if anyone has a comment(specially a disagreement) about my thesis that Bernanke is about to grandfather the biggest commodity bull market in a century and how we can all profit from it

PM user for blog site.

Please send me the URL

Stosh · Jan 12, 2009

In simple terms, the way I understand the theory: There has been a drop in private spending and bank lending, so the government steps in to offset the drop......then when the private sector comes back the gov't will pull back their part. The rub comes in on the pulling back part........this part is not popular with most folks and costs votes for politicians. If gov't pulls back later then no inflation problem.....if not then inflation. That is the dilemma.....I doubt they can pull it back, although Paul Volcker did it in the early '80s in the face of tremendous opposition from Congress.

Degenerate · Jan 12, 2009

Quote from RiceRocket:

It's going to take this mega-printing just to offset the loss of paper wealth in the world we've seen in the past 2 years. Then, once things are re-flated to where they were, it will take another round of printing to create any new inflation.

I think some of these hyperinflation fears come from people who don't really have a grasp on how much wealth has evaporated recently. Even if the wealth was paper wealth, it still affects everyone's bottom line.

True wealth is only created through production. Printing money does nothing else but divides the existing wealth by more money. You can inflate nominal prices by firing up the printing presses, but no ones standard of living is being raised by such action.

index_trad3r · Jan 12, 2009

megainflation is not possible without wages going up as well and they wont because those jobs have a better chance of being outsourced than having a higher pay. Rising prices on the other hand WITHOUT rising wages would just constrict everyone even more and create a very very very deep depression. Rising prices could very well put 30 40 even 50% of americans into a situation where the will have to work just to simply buy the basics.

Get out at every chance u possibly have (i.e every rally, the last one which ended 3 days ago was a good chance) and save ammo for the big washout down days... make some quick bucks... rinse and repeat for a few years AT LEAST

short&naked · Jan 12, 2009

Quote from Daal:

I created a blog to help my trading, I normally think of blogs as time wasting garbage created by attention seeking juveniles but I found out that forcing yourself to writedown your ideas, trades gets you to revise your theories and either reject them or have more confidence on them leading you to make more money, it certainly was like that for me in 2008

If would appreciate if anyone has a comment(specially a disagreement) about my thesis that Bernanke is about to grandfather the biggest commodity bull market in a century and how we can all profit from it

PM user for blog site.

How is hyperinflation supposed to set in with the Money Supply's velocity reaching below 1?

plugger · Jan 12, 2009

Quote from Degenerate:

True wealth is only created through production. Printing money does nothing else but divides the existing wealth by more money. You can inflate nominal prices by firing up the printing presses, but no ones standard of living is being raised by such action.

Beautifully stated.

short&naked · Jan 13, 2009

Quote from Degenerate:

True wealth is only created through production. Printing money does nothing else but divides the existing wealth by more money. You can inflate nominal prices by firing up the printing presses, but no ones standard of living is being raised by such action.

And what if that printed money is converted into real goods?