Are you concerned with inflation?

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
24
32
Canada
Right now inflation remains well contained and not a single central bank worries about the negative impact of inflation on the economy. We can all agree that monetary policy is very accommodative right now and will remain so for at least a few more years.

Are you concerned that inflation will bite the global economy rather hard and when least expected?

Inflation may be hard to generate for some countries (like Japan), but once it takes place it tends to increase rather fast while reducing inflation is a hard task and the only thing central banks can really do is increase interest rates and hope for the best. A hike in interest rates during stagnant economic growth or stagflation is every economies worst nightmare.

I start to wonder about inflation and think it may come lurking around the corner sooner than any economy can handle.
 

Easy Trader

Master Trader
Sep 17, 2011
240
5
59
"I believe" they are more concerned about deflation. As am I. Private debt can be written off (default) much quicker than public debt and private debt in the US dwarfs the national debt, SS, Medicare/caid together. Check out how much private debt the US has accumulated from 2000-2008 it's unreal, and in principal every private debt loan is inflation, so the inflation created by us American people, private business/institutions makes QE look like child's play. This doesn't mean the FED is doing the correct thing, in truth all they can do is try to keep the interest down until a depression or hyperinflation(unlikely) or my bet is many years of stag just like Japan for the last 20yrs. Not to mention the largest group (baby boomers) who are retiring and won't be "stimulated" into spending. Just lending another view
 

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
24
32
Canada
"I believe" they are more concerned about deflation. As am I. Private debt can be written off (default) much quicker than public debt and private debt in the US dwarfs the national debt, SS, Medicare/caid together. Check out how much private debt the US has accumulated from 2000-2008 it's unreal, and in principal every private debt loan is inflation, so the inflation created by us American people, private business/institutions makes QE look like child's play. This doesn't mean the FED is doing the correct thing, in truth all they can do is try to keep the interest down until a depression or hyperinflation(unlikely) or my bet is many years of stag just like Japan for the last 20yrs. Not to mention the largest group (baby boomers) who are retiring and won't be "stimulated" into spending. Just lending another view��

I do agree with you on many years of stagflation just like Japan continues to suffer in real terms.
 

mehrabhosain

Trader
Jul 9, 2013
2
0
17
Dhaka
www.bdallrounder.com
nflation is known to economists as a general, persistent and appreciable rise in the cost of goods and services, and is quantified through the calculation of a consumer price index (CPI).

There are two key types of inflation which are characterised by their causes, which are :
Demand pull-which is simple defined "too much money chasing too few goods", relating to the level of aggregate demand in the economy and/or the demand for labour(related to cost push). This inflation occurs when there are bottlenecks in supply relative to demand, and thuse prices go u
 

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
24
32
Canada

bkhsdsudhk

Trader
Jul 7, 2013
10
0
12
I'm not worried about inflation, because I have some real estate, some of the gold assets, as well as part of the stock of assets, not a lot of my cash
 

reed

Banned
Jun 5, 2013
51
0
0
Inflation is something you wish for, even though it could benefit some. Prices of goods go sky high, and we all know what that means.
 

Fxpipper

Master Trader
Oct 26, 2011
1,132
4
49
Heck, Inflation has always been there along with the tendency to start a "runner" as seen in some of the south american countries. Frankly, the fed has done a half a**** job and now, thanks to the fed's announcement of scaling back, inflation has started hitting the breakers, all across the world.
The issue with inflation, especially runaway inflation is that it is hard to bring it back to control. So don't be surprised if inflation hits double digits in asia and soon, back home there's the boomerang effect..
To sum up, get ready to be chewed and spit out as the world economy goes into inflation overdrive..