Three Charts That Bust the Inflation Myths



Comments (3)

  1. Mark Peterson says:

    Good points Ms. Basenese. My question is this: how is going to buy the $1.6 trillion in U.S. treasuries this year, plus the $2.5T that will be rolling over this year? If the Fed doesn’t run the presses, interest rates will go up, killing the economy and increasing our government debt load.
    Thanks, Mark

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  2. Inspired says:

    The thing is, the money that has been printed is still sitting in the fed. As long as the money stays in the fed, there is no worry about hyperinflation. Now, when things start to recover more, and banks pull the money out of the fed and lend it out, that is when we will see inflation. It is still too early to tell the damage of the record printing.

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  3. Jeff says:

    Okay, forget hyperinflation in the short term. Can we agree on (virtually unchecked) inflation in the long term? The Fed feels it apparently must buy the Treasury Bills because no one else will…and they can’t pay enough interest on them entice anyone. One month T-bills are actually returning NEGATIVE amounts today. This Ponzi scheme seems like it MUST continue. Until inflation is allowed to run for an untold amount of time and our government can, with control, inflate our way out from under some of our debt burden, we’ll be buying our own debt for years. Hyperinflation? Hopefully not, but inflation? YES, without a doubt. Real inflation rates for this year alone (so far) are 6.8% (less than half that officially acknowledged). Most people this year aren’t getting a raise…diminishing their purchasing power. How many years will this go on, diminishing purchasing power while inflation jacks prices up around us all? We don’t need hyperinflation to devalue our dollar’s value (to what end, you tell me) when a long and drawn-out (for years to come) policy of inflation will do the same trick. Oh, and in case I MUST say it: inflation can’t be kept in check until the Fed raises its interest rates, and THAT can’t happen without driving up the rates paid on T-bills…and that can’t happen because we can’t afford an increase on the interest we’re paying on our debt. Inflation is here to stay so…let’s forget hyperinflation and color you “right”.

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