they have been fighting the deflation with everything they've got. the problem is that qe has quit working. they have reflated the equity markets and commodities have inflated but people are still too indebted to have the spending capacity to spur growth. to me the economy is balancing right on the edge of the cliff and the central bankers are doing all they can to keep it from rolling the next inch. europe isn't helping with their enforced austerity which, i think, should be more focussed and less severe. high unemployment is not a good thing. in order to avoid deflation there has to be a return to growth but so much of the growth of the past forty years was debt financed that we have run out of the capacity to spur more growth. we've actually had qe for four decades now and it has become a drag on the economy instead of a stimulus. i think in agriculture you have to ask what happens when there is a generally good crop around the world.
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Maybe Im starting to seriously think owning phisical gold is the way to go!
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Inflation happens when things are not going so well.
A few bubbles popping doesnt mean deflation.
A soverign debt default,does not equal a rise in
purchasing power.
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The problem I see with printing money is that the (temporary) humam condition
of greed is holding the process back from the progression it could actually cause.
Should those who acquire this newly printed money simply use it rather than think " yes, now I can earn interest and sit on my ass", we could move along.
There is already more than enough money on this planet; more than enough gold, more than enough silver, more than enough land, food, water "oil" and on and on. The problem comes with thinking in lack, and driving that thought into the minds of those with less money or no money at all.
I agree with those who say the money being printed in the USA and other parts of the world needs to be used for infrastructure projects, and business propositions rather than simply released into the hands of people who want to keep it under their mattresses, or invest in commodities like land or gold. The stock market, and shit like that has become the scorge of the earth in my mind. Making money from nothing has caused a true work ethic problem in our earthly society.
Too Da Loo
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