I wouldn't be so sure about that, if you think about it with the massive destruction in GDP, wealth and excess in production that supported that, there is nearly 7% gap in consumer output alone. Factor in destruction of current oversupply, 5 year pversupply of U6 unemployment (remember employment keeps rising for years after a recession is over...and I don't think it is yet) 3 Million in excess housing built over the last few years, the coming mortage resets, commercial real estate foreclosures rising, massive debt servicing by the U.S. taxpayer, 2010-2011 tax increases due to the previous administrations inability to secure the current cuts into law...plus many factors all lead to the economy NOT growing.PrinceMS wrote: ↑LOL Love the quote. But gold does have its uses and it currency was gold backed for so many ions - so it is still considered important thing to fall back on.
@Icedawn: We are not working with speculation but some basics how economy works. Just because so much money has been put out - inflation will take place as a result. There are ways gov't can fight it but they can only do so much (or as i think it - only prolong the inevitable).
I haven't found anyone who give any rationale or side with inflation NOT happening in the next couple of years. Most say that we should be getting close to 1974 inflation (and high rates of ~14%)
Just because there is tons of money pumped into the economy, doesn't mean inflation, it has to make its way to the market, which it isn't as banks in the U.S. are holding onto it. Without lenders there is no growth either.
Its a complicated formula that goes far beyond just pumping money into the economy, which I don't understand either:
GDP equals M2 multiplied by the velocity of money (V). M2 equals the monetary base (MB) multiplied by the money multiplier (m)