Comments on: Don’t underestimate the power of printing money http://www.creditwritedowns.com/2009/03/don%e2%80%99t-underestimate-the-power-of-printing-money.html Sat, 21 Nov 2009 08:48:41 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2009/03/don%e2%80%99t-underestimate-the-power-of-printing-money.html/comment-page-1#comment-4467 Edward Harrison Fri, 20 Mar 2009 12:19:43 +0000 http://www.creditwritedowns.com/?p=7216#comment-4467 Ranger, I take a fairly dubious view of printing this much money. I am not sufficiently convinced that the Fed will be able to soak up this excess liquidity when the economy turns around. I certainly do believe, as you do, that an inflationary expansion is generally preferable to a deflationary collapse. However, I am very concerned that the Fed is going overboard here. The end result will be a lower us dollar, higher inflation down the line and higher commodity prices: read gold, oil and ag products. The irony is that if inflation feeds through to oil again as it did last year, we are going to have a nasty relapse down the line. In the meantime, we just need to watch how this plays out. It's all pretty unprecedented. Ranger, I take a fairly dubious view of printing this much money. I am not sufficiently convinced that the Fed will be able to soak up this excess liquidity when the economy turns around. I certainly do believe, as you do, that an inflationary expansion is generally preferable to a deflationary collapse. However, I am very concerned that the Fed is going overboard here.

The end result will be a lower us dollar, higher inflation down the line and higher commodity prices: read gold, oil and ag products. The irony is that if inflation feeds through to oil again as it did last year, we are going to have a nasty relapse down the line.

In the meantime, we just need to watch how this plays out. It’s all pretty unprecedented.

]]> By: sobers http://www.creditwritedowns.com/2009/03/don%e2%80%99t-underestimate-the-power-of-printing-money.html/comment-page-1#comment-4457 sobers Thu, 19 Mar 2009 21:41:34 +0000 http://www.creditwritedowns.com/?p=7216#comment-4457 Who knew economics was so easy? Just get out the trusty printing press and print your way to riches! By the way can I get a billion or two sharpish so I can buy some productive assets now? I think their supply is fairly fixed so I know which way the price will be going with all this funny money floating around. I'd like to get in now before economic reality kicks in in about a years time. Telegraphic transfer please, usual Swiss Bank account, password 'Weimar'. Who knew economics was so easy? Just get out the trusty printing press and print your way to riches! By the way can I get a billion or two sharpish so I can buy some productive assets now? I think their supply is fairly fixed so I know which way the price will be going with all this funny money floating around. I’d like to get in now before economic reality kicks in in about a years time. Telegraphic transfer please, usual Swiss Bank account, password ‘Weimar’.

]]> By: Ranger Turtle http://www.creditwritedowns.com/2009/03/don%e2%80%99t-underestimate-the-power-of-printing-money.html/comment-page-1#comment-4442 Ranger Turtle Thu, 19 Mar 2009 14:23:50 +0000 http://www.creditwritedowns.com/?p=7216#comment-4442 At least the Fed can print more money needed to get us out of this mess. Can you imagine the Congress/Public reaction if the Treasury asked for +1T$ MORE for bailouts? I believe that's whats behind the Treasury's 'soft shoe shuffle' plan. They only have enough money for emergencies, can't politically get more money, and have asked the Fed and FDIC to bear most of the burden. Just an opinion. At least the Fed can print more money needed to get us out of this mess. Can you imagine the Congress/Public reaction if the Treasury asked for +1T$ MORE for bailouts?
I believe that’s whats behind the Treasury’s ’soft shoe shuffle’ plan. They only have enough money for emergencies, can’t politically get more money, and have asked the Fed and FDIC to bear most of the burden. Just an opinion.

]]> By: Blick Log » Presseschau: Die Blicke in die Wirtschaft am 19. März 2009 http://www.creditwritedowns.com/2009/03/don%e2%80%99t-underestimate-the-power-of-printing-money.html/comment-page-1#comment-4438 Blick Log » Presseschau: Die Blicke in die Wirtschaft am 19. März 2009 Wed, 18 Mar 2009 23:37:49 +0000 http://www.creditwritedowns.com/?p=7216#comment-4438 [...] CWD: Don’t underestimate the power of printing money [...] [...] CWD: Don’t underestimate the power of printing money [...]

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