Too much money being printed. Inflation here we come.

Check out the right end of this chart.

inflation-2009.gif

Yes there is a lot of money being printed.

How does that translate into inflation?

http://www.economicshelp.org/blog/economics/why-printing-money-causes-inflation/

This is an exerpt form here. http://www.wisegeek.com/what-causes-inflation.htm
There are many causes for inflation, depending on a number of factors. For example, inflation can happen when governments print an excess of money to deal with a crisis. As a result, prices end up rising at an extremely high speed to keep up with the currency surplus. This is called the demand-pull, in which prices are forced upwards because of a high demand.

It will be difficult if not impossible to have serious inflation unless that printed money gets into circulation via wage increases.

With a less than stellar job market, pressure to reduce wages and deflating home prices, i just don’t see it for quite some time.

I think deflation is still a very real possibility.

With so many Trillion dollar spending bills, they have to have that many Trillion dollars, don’t they.

And we are borrowing them from China.

The plan, here, is to spend so much that the givernment HAS to raise taxes, to pay for it all.

This is how some people see the world. More government control and take money from those who earn it and re-distribute it to those who don’t.

They call it “Social Justice”.

And, when you are working hard for socail justice, what is a little inflation?

More like stagflation with these unemployment rates.

We already have inflation. Try to buy copper or gold or a new pickup truck. I priced a new backhoe yesterday thinking construction is way down and that I could get a deal. I about fell off my chair.

Rebound too weak for inflation, experts say

(12-16) 04:00 PST Washington -
Evidence that the economic rebound could eventually raise inflationary pressures emerged in a report Tuesday that wholesale prices surged last month.

Most economists aren’t worried, though. They think the economy remains too weak for the price increases to last. The Federal Reserve began a two-day meeting Tuesday and is likely weighing the higher-than-expected wholesale inflation. Should inflation pressures mount, the central bank could be forced to start raising interest rates sooner than expected.

But Fed policymakers aren’t likely to raise a key rate at the end of their meeting today. The Fed has kept rates at record lows to bolster the shaky recovery.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/12/16/BUG61B4K54.DTL&type=business#ixzz0a3s0GPCF

I’m see they agree with me.

Read the whole thing Nick.:roll:

They think the economy remains too weak for the price increases to last.