FED printed 1.5 trillion and tripled the base money supply. But inflation is not here. Why? Debt, which is our money supply is to the tune of 50 to 300 trillion if you count unfunded liabilities like social security, medicare. In other words, economy is already built on the assumption that this money would somehow exist in the future. If borrowing stops, and credit deflates, FED can print money and make up the difference, but that happens AFTER credit deflates. In other words, that is after deflation hits. So don't hold your breath for alot of printed money. Nothing has been printed yet. FED will start printing at the bottom of the crash which will be too late. And it can cause hyperinflation later. Here is how credit inflation and credit deflation happens:
http://www.kondratieffwavecycle.com/credit-inflation/
If inflation is a quiet thief, then deflation is an armed burglar. You wouldn't invite either into your home, yet chances are that one of the two is stealing your money right now.
Elliott Wave International, the world's largest market forecasting firm, has just released a free report that reveals which of these threats you should prepare for right now.
Bob Prechter's New York Times best-seller, Conquer the Crash, which was published far before the latest headlines warned of inflationary and deflationary dangers.
Even after strong countertrend rallies, global stocks, bonds and commodities are still well off their multi-year highs. All the while, the U.S. dollar has rallied. This broad-based asset deflation is forcing investors to rethink the deflationary scenario. Is it possible that the Fed can't prevent deflation as its chairman, Ben Bernanke, once promised?
It's hardly the time to ignore contrarian trader Robert Prechter's prescient message of how to survive and prosper in the today's market environment. Everyone has prepared for inflation. The herd is wrong once again. It pays to adopt contrarian trading strategies when the crowd bets on the opposite.
