http://bit.ly/KH7F9 - - - However, he said a big threat lurked in the country's expanded monetary base, which now stands at about US$1.8-trillion. While the expanded monetary base was needed to feed economic growth and ward off deflation under the Fed's quantitative easing plan, Mr. Ashworth said such high levels could fuel rampant inflation once broader monetary conditions improved.
He said it remained to be seen how much success the Fed will have when it decides to end its quantitative-easing plan and shrink the monetary base. - - - When I landed in Moscow on student exchange back in September of 1992, a pack of Marlboro's at an airport kiosk was 310 rubles. When I left almost 12 months later, it was 116,360 rubles, as I recall. Russians I knew then were unanimous in the view that nobody thought anything like that even vaguely possible even a year before. That's something like the scale of what's coming our way. Our day of reckoning may not be that dramatic, except for the fact our population has no concept of that kind of hardship, and I think may turn violent in ways we can't imagine with far less provocation. What is quantitative easing? Think 'morphine' after you suffer an open wound that's gushing blood. Eventually, it wears off. Or you can get addicted to it, in which case your situation is actually worse, and will take far longer to recover, if it doesn't kill you. - Bob _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[email protected] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
