RT @TheLimerickKing: QE has
not led to inflation It's now a much worse situation Velocity's low But risk assets grow So now it's just wealt... Aug 15, 2013
Not exact matches
He said that even if U.S.
inflation numbers come in better than expected they would
not lead to a sustained dollar recovery but a short - term gain.
Traders are suddenly worried about interest rates (although anyone older than 30 has
to be amused that 2.85 % on the Treasury 10 - year is a source of panic), worried about
inflation (although after the last decade of stagnant wages, Friday's 2.9 % rise should be cheered,
not jeered), and worried about a tax - fueled spike in growth (with this report from Powell's Atlanta colleagues
leading the way.)
If you have 30 years in retirement, a «safe» strategy may
not grow your assets enough
to keep pace or outpace
inflation, which could
lead to struggles down the line
to maintain your standard of living or manage a big medical bill, Stinchcombe said.
She has long argued that an extraordinary amount of monetary stimulus would
not lead to runaway
inflation because economic activity was so depressed.
But having more room
to cut rates isn't the only reason
leading some economists
to flirt with higher
inflation.
These are exactly the kinds of things that
lead to inflation, but we aren't in the business of guessing.
True, it was only one quarter's information and that was
not enough
to change our numerical forecast of
inflation, but it did
lead us
to conclude in our May Statement on Monetary Policy that there was no longer an upward risk
to our
inflation forecast.
There wouldn't be a an asset bubble either if growth and wages fueled
inflation and that
led to an interest rate rise.
While investors are often concerned about catastrophic risks, failing
to allocate enough
to risky assets can
lead investors
to «fail slowly» by
not maintaining pace with
inflation or supporting withdrawal rates.
Moreover, core
inflation moved ahead of its level of 6 months ago, and
leading economic measures continued
to slip (though we don't see them as being indicative of recession risk at present).
In terms, I think of
inflation and bond markets, it took six, seven, eight, maybe 10 years of high
inflation in the 1970s before you had Paul Volcker brought in
to say «enough is enough,» and then again whether it's
led by American monetary policy but similar moves in Europe, obviously in the UK, a significant tightening of monetary policy because people got fed up with
inflation and I don't think that we are kind of yet at the point where real wages have been suppressed so much by that irritation that
inflation is always running ahead, life is becoming more expensive, so we need the central bank radically
to change their policy.
Surging deficits will likely require greater Treasury issuance, which will
lead to higher rates, even if
inflation doesn't rise much more.
Wage bargaining generally may
not be very responsive
to unemployment; wage bargains in a particular
leading sector may reflect conditions in that sector, but then be transmitted, through concerns about relativities, into other sector s which experience quite different conditions; wage negotiator s may have unduly high expectations of future
inflation in mind when striking their bargains.
The combination of weak supply, rising GDP and general
inflation is
leading markets
to levels
not seen for 4 years, said Holt Marytn.
It's true people lending do expect
to get back money plus some profit — or they should, if they are rational, which isn't true as often as you'd think — however all that does is
lead to inflation, and possibly more
inflation after that, which I already acknowledged.
So far the collapse in Sterling has
not led to a significant rise in
inflation as retailers have largely absorbed the increased cost of imported goods and materials.
If
not carefully handled, it will
lead to spiral
inflation and low purchasing power.
Dodelson: Again referring
to this dark energy today, there are two possibilities that
lead to optimistic branches and one is that dark energy today may
not be vacuum energy, it may be something completely different; and a good piece of evidence for that is that
inflation itself require [s] dark energy, so it kind of make sense
to think, [«Well, we had some early [epoch] of dark energy which is something [we're trying
to] figure out, maybe [today] there is also [a] new type of dark energy we are trying
to figure out and it is
not vacuum energy, so that would
lead to a less pessimistic future.
Granted, none of these numbers take into account ticket price
inflation, but even so, Infinity War has a comfortable
lead above every other movie
to not worry.
The Problem: The tire information placard in certain Ridgeline trucks may
not show the correct information for the equipped spare tire, and incorrect information could
lead to improper
inflation and tire failure.
Cheap credit can't reflate a sector in fundamental oversupply, like residential housing, unless the FOMC were willing
to let
inflation rip, perhaps
leading the value of residential housing
to rise, as it did in the «70s.
But aside from monetizing debt, which often
leads to serious
inflation, QE has
not shown much potency
to do anything good.
If nominal interest rates increased at a faster rate than
inflation, then real interest rates might rise,
leading to a decrease in the value of
inflation - protected securities.Diversification does
not assure a profit or protect against loss in a declining market.
If you make the conservative assumption that your investments will just keep pace with
inflation during the years
leading up
to age 65, that means you will need an extra $ 50,000 in your
nest egg
to cover every year earlier you retire.
Inflation or repression are more likely, but higher taxes or government defaults are
not impossible if the politics
lead to a stalemate, where no one is willing
to compromise.
I think this will
lead to major
inflation in all currencies as we have
not seen the end of money printing.
You don't need
to be an economist
to understand that increasing the money supply eventually
leads to inflation, which in turn erodes the value of your money.
With
inflation expectations well anchored, a one - time increase in energy prices should
not lead to a permanent increase in
inflation but only
to a change in relative prices.»
Moreover, core
inflation moved ahead of its level of 6 months ago, and
leading economic measures continued
to slip (though we don't see them as being indicative of recession risk at present).
But ask a broker, he'll remind you: Despite the global rally
to date, valuations certainly aren't egregious, and factoring in the incipient / accelerating economic recovery we now see in the
leading economies & the unprecedented low interest /
inflation rate environment, they may even be (come) downright attractive.
If China will
not allow its currency
to strengthen, well then, the path of least resistance is for the US
to debase its currency,
leading the world in a cycle of competitive debasement /
inflation.
While investors are often concerned about catastrophic risks, failing
to allocate enough
to risky assets can
lead investors
to «fail slowly» by
not maintaining pace with
inflation or supporting withdrawal rates.
A bubble
to me is something still subjective, because your answer may
not be the same as mine, but is something [where] I've tried my best
to come up with future assumptions of growth, be it for a stock,
inflation if it's a bond, and current price, and I can't come up with assumptions that would
lead any rational investor, subjective again,
to want
to own this.
Because of demographics, his actions did
not lead to price
inflation, but asset
inflation.
Furthermore, the news that more and more «economists» are concerned about deflation rather than
inflation leads me
to think that an inflationary trend is more likely than
not.
Did
not want
to see M2 rise, which would
lead to inflation.
Won't the increased earning of MR points create an «
inflation» scenario where an abundance of MR points
leads to a decrease in value?
That rebuttal nicely sums up a lot of the accepted facts of unwavering peakoilers, e.g. that it's been conclusively shown that oil price hikes are linked
to recession (
not really; e.g. wrong macro policy responses
to oil -
led inflation often tried
to tackle it by raising interest rates, which just compounded the problem and possibly triggered recession by itself; uncertainty in price is often more important
to investment decisions that which direction it's going in, given that fuel costs are actually
not a large % of overall costs.)
Rate of
inflation is one such factor, as it will keep on messing with the value of your money every year, which means you will
not be able
to lead a lavish lifestyle
to the extent that you always dream of.
They don't want
inflation rates
to fall too far, as this limits their ability
to boost a weakening economy, but neither do they want tightening labor markets
to overheat and
lead to accelerating
inflation.