Comment: "Isn't it DEFLATION, Peter?" This guy and Mish and others love

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"Isn't it DEFLATION, Peter?" This guy and Mish and others love

"Isn't it DEFLATION, Peter?" This guy and Mish and others love to hate on anyone warning about INFLATION. The Fed creates trillions out of thin air, and yet they're saying inflation is not a threat. Amazing. Don't they see what's going on? The money's pouring into the stock market!

Every week, the Fed buys $20 billion in bonds, and the sellers take that fresh money and buy stocks! The stock sellers take that money and put into more stocks, while their brokers collect massive fees. JP Morgan ALONE has $500 billion in deposits. FIVE HUNDRED BILLION in one bank. That's a lot of cash doing nothing! What about the SIX HUNDRED BILLIONS in our trade deficit? That's equal to a year's worth of QE. Suckers in China are eating our inflation.

Deflation exists because banks are not lending and buisnesses cannot put money where its needed, into capital projects and salaries. That's not changing with all the QE.

What happens when the dollar collapses and the stock market, the bank vaults, and the Chinese won't absorb all that cash anymore, and instead pour it into commodities?

October 1923, my friends.

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"