tag:blogger.com,1999:blog-2335748440449035592.post8474619322488312983..comments2009-01-08T14:57:10.401-05:00TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2335748440449035592.post-57823669006818047912009-01-08T14:57:00.000-05:002009-01-08T14:57:00.000-05:00Eventually<BR/><BR/>The capital destruction, combined with lack of velocity of money, is putting us in a deflationary state for now. Theoretically the Fed will print as much money as necessary to end this. <BR/><BR/>Then we'll turn from deflationary to inflationary. When that time comes is anyone's guess. In theory gold should ramp, along with other commodities and the dollar should crumble.<BR/><BR/>Since the dollar is holding in here, I consider this still a deflationary period despite all the money being created (record rates) - the problem is lack of velocity of money. Basically we are plugging holes of capital destruction with new money but not yet at a rate that supersedes the destruction.TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-9889268726643836202009-01-08T14:52:00.000-05:002009-01-08T14:52:00.000-05:00Hi Mark: Just a quick question: With all this borrowing/printing of money by the US Gov., do you see any big inflation coming?<BR/><BR/>Regards,<BR/>serge.smhttp://www.blogger.com/profile/14798929316001982614noreply@blogger.com