The Horn of Hyperinflation?

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The.Techno.Luddite's picture
The.Techno.Luddite
Status: Bronze Member (Offline)
Joined: Nov 26 2008
Posts: 34
The Horn of Hyperinflation?

This pattern should shift from deflationary to inflationary/hyper-inflationary at some point, and if this guy gets his way. Perhaps sooner rather than later?!

Evans says Fed needs to mimic below-zero rates

Sat Jan 3, 2009 8:18pm EST

SAN FRANCISCO (Reuters) - A grim economic outlook highlights the
need for the Federal Reserve to step up quantitative measures to boost
growth, with official interest rates already effectively at zero,
Charles Evans, president of the Chicago Fed, said on Saturday.

Evans said that based on the outlook for rising unemployment,
falling industrial production and a wider output gap, economic models
suggest rates should be below zero.

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Read the rest at:

http://www.reuters.com/article/ousiv/idUSTRE5021V320090104

Brainless's picture
Brainless
Status: Silver Member (Offline)
Joined: Dec 9 2008
Posts: 150
Re: The Horn of Hyperinflation?

That is the problem with 'models'. They are inaccurate. Human behavior is hard to capture in algoritms. Instead of sitting back and see how the market solves its problem they have this model that engourages them to 'correct' the market.

we all know what happened the last million times they tried. They all failed.

I can only see a rescue of the dollar when countries like china and japan are willing to destroy their dollars evening out the newly created ones. Who knows maybe it will happen.

 

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