Comments on: M0 Money, M0 Problems: Expect Massive Inflation in 2009 and Beyond http://www.citizeneconomists.com/blogs/2009/03/18/m0-money-m0-problems-expect-massive-inflation-in-2009-and-beyond/ Citizen Economists is an online economics magazine written by citizen journalists. These ordinary citizens provide reports and commentary on the current events affecting the economics of the fields they work in. Wed, 08 Feb 2012 04:44:52 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Mark Herpel http://www.citizeneconomists.com/blogs/2009/03/18/m0-money-m0-problems-expect-massive-inflation-in-2009-and-beyond/comment-page-1/#comment-7666 Mark Herpel Mon, 23 Mar 2009 13:34:39 +0000 http://citizeneconomists.com/blogs/?p=578#comment-7666 I'm sad to say great article, 100% correct IMHO. When debt rises above $10 Trillion there is no hope of ever paying that back and I'm sorry but with all that cash out there the hope that raising interest rates to 'slow down' business is like bailing water on the Titanic with an old shoe. Plain and simple, it's over for the dollar in classic Fiat Currency fashion, but I believe the US will survive and in a decade or two come out stronger. God Bless the USA. Meanwhile get out of those dollars and buy some gold. Mark editor@dgcmagazine.com I’m sad to say great article, 100% correct IMHO. When debt rises above $10 Trillion there is no hope of ever paying that back and I’m sorry but with all that cash out there the hope that raising interest rates to ’slow down’ business is like bailing water on the Titanic with an old shoe. Plain and simple, it’s over for the dollar in classic Fiat Currency fashion, but I believe the US will survive and in a decade or two come out stronger. God Bless the USA.

Meanwhile get out of those dollars and buy some gold.

Mark
editor@dgcmagazine.com

]]> By: Raymond http://www.citizeneconomists.com/blogs/2009/03/18/m0-money-m0-problems-expect-massive-inflation-in-2009-and-beyond/comment-page-1/#comment-7526 Raymond Thu, 19 Mar 2009 13:53:36 +0000 http://citizeneconomists.com/blogs/?p=578#comment-7526 A falling dollar is inflationary. And It has now become apparent that the so called "growth" was funded by consumer debt, extracted from home equity. The Fed and congress wants to again promote "growth" by printing. A falling dollar is inflationary. And It has now become apparent that the so called “growth” was funded by consumer debt, extracted from home equity. The Fed and congress wants to again promote “growth” by printing.

]]> By: Dirk http://www.citizeneconomists.com/blogs/2009/03/18/m0-money-m0-problems-expect-massive-inflation-in-2009-and-beyond/comment-page-1/#comment-7516 Dirk Thu, 19 Mar 2009 03:23:23 +0000 http://citizeneconomists.com/blogs/?p=578#comment-7516 Hit wrong button- would you promise to pay me $20,000 in devalued dollars in 18 months if I gave you $10,000 today? Hit wrong button- would you promise to pay me $20,000 in devalued dollars in 18 months if I gave you $10,000 today?

]]> By: Dirk http://www.citizeneconomists.com/blogs/2009/03/18/m0-money-m0-problems-expect-massive-inflation-in-2009-and-beyond/comment-page-1/#comment-7515 Dirk Thu, 19 Mar 2009 03:22:15 +0000 http://citizeneconomists.com/blogs/?p=578#comment-7515 JD, How can $3 Trillion of Fed money offset $15 Trillion of lost wealth? M0 is trivial compared to the credit that makes our economy run. It would probably take $10-20 Trillion of actual money to reflate this economy (and THEN we'd see some inflation). All this will do is hopefully slow deflation and allow a modest recovery. There is so much excess production capacity- do you think the managers that have been layed off or taken 30-40% pay cuts are going to refuse to go back to work for even 80% of what they were making? Do you think empty factories are going to increase rents? Do you think food products will go up as the government stops paying farmers not to farm? The US has a great deal of supply capacity and sellable assets- as do many other countries that use dollars. Oil and Chinese stuff will go up- check my posts from six months ago and you'll see I predicted this. But as the dollar fell 35% over most of this decade, economic growth in the US and globally was strong, so when the dollar starts falling we'll know we're back on the right track. I'm not sure this new money is enough- I guess we'll see in a year or two- but banking on hyperinflation is a pretty big risk. Would you promise to pay me $20,000 ub JD,

How can $3 Trillion of Fed money offset $15 Trillion of lost wealth? M0 is trivial compared to the credit that makes our economy run. It would probably take $10-20 Trillion of actual money to reflate this economy (and THEN we’d see some inflation).

All this will do is hopefully slow deflation and allow a modest recovery. There is so much excess production capacity- do you think the managers that have been layed off or taken 30-40% pay cuts are going to refuse to go back to work for even 80% of what they were making? Do you think empty factories are going to increase rents? Do you think food products will go up as the government stops paying farmers not to farm? The US has a great deal of supply capacity and sellable assets- as do many other countries that use dollars.

Oil and Chinese stuff will go up- check my posts from six months ago and you’ll see I predicted this. But as the dollar fell 35% over most of this decade, economic growth in the US and globally was strong, so when the dollar starts falling we’ll know we’re back on the right track.

I’m not sure this new money is enough- I guess we’ll see in a year or two- but banking on hyperinflation is a pretty big risk. Would you promise to pay me $20,000 ub

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