While the money supply of the U.S. has ramped up exponentially over the past 5 years, I see two reasons why inflation has not been that terrible.
1) The money velocity has been very low, which leads one to worry about what happens when it increases. I will leave this idea to other threads.
2) The U.S. dollar is still used as a de facto world reserve currency. Part of that new USD can be absorbed by other countries. After many years of dominance, I am starting to see cracks in the USD armor. Below I have posted a few articles on the subject. For those of us that get paid in USD, a change in the world reserve currency is a very BAD prospect!
http://www.businessinsider.com/the-media-wont-touch-this-story-about-the-end-of-the-us-dollar-2012-4
http://www.nypost.com/p/news/opinio..._risks_dollar_doomsday_j8dxHSYWUa22QpSN7ttOIL
http://www.moneynews.com/StreetTalk...lation/2012/03/13/id/432355?PROMO_CODE=E67B-1
1) The money velocity has been very low, which leads one to worry about what happens when it increases. I will leave this idea to other threads.
2) The U.S. dollar is still used as a de facto world reserve currency. Part of that new USD can be absorbed by other countries. After many years of dominance, I am starting to see cracks in the USD armor. Below I have posted a few articles on the subject. For those of us that get paid in USD, a change in the world reserve currency is a very BAD prospect!
http://www.businessinsider.com/the-media-wont-touch-this-story-about-the-end-of-the-us-dollar-2012-4
http://www.nypost.com/p/news/opinio..._risks_dollar_doomsday_j8dxHSYWUa22QpSN7ttOIL
http://www.moneynews.com/StreetTalk...lation/2012/03/13/id/432355?PROMO_CODE=E67B-1
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