[ftwinnovations]

These ideas are more than just clever, they are exactly what is happening due to money printing and zero to near-zero interest rates. You restated the facts well.

As to those who claim QE ended, and other nonsensical ignorant claims, that is irrelevant. The money went to reliquify the broke banks' balance sheets, and so of course did not immediately leave their digital vaults. That takes time, and we are slowly (technically not at all slowely) watching the destruction of the dollar's purchasing power via mass inflation, beginning with the assets closest to the money printing spigot: real estate, stocks, fine art, and other elite assets.

[forgetsusername]

>other nonsensical ignorant claims

Inflation is the rise in overall price level, not the increase in a few select asset classes. We aren't seeing inflation. The people who have been making that claim for 5+ years have been wrong. Period.

[rtpg]

Does it matter if there's fine art inflation? The real estate inflation boom seems more linked to housing policy than QE too...

Declaring mass inflation for the dollar doesn't seem to align with how CPI is evolving though, and it's not like the dollar is losing much ground to foreign currencies. If standard purchases haven't changed much, and purchasing abroad hasn't changed much, could we say that things have changed much?

Though you're saying slowly, maybe I'll ride the bubble til it bursts just like the rest of 'em.

[pessimizer]

> Does it matter if there's fine art inflation?

Depends on how leveraged it is.

[rtpg]

Good point, though I really hope we're not basing too many derivative products off of fine arts

[Spooky23]

Fine art inflation is often just a form of money laundering and a tax shelter.

[rmrm]

and yet the dollar is not substantially weakened vs other currencies, it is quite strong. This isn't a dollar specific phenomenon at all.

It seems a more appropriate statement would be destruction of all currencies purchasing power. Which leads me to wonder - what is the impact of that exactly?

Should the dollar be allowed to strengthen greatly (relatively to basket of all other currencies), is that what people are proposing? Can we guess at what the dollar based economy might do in that instance?

[toephu2]

"is quite strong"...yes currently, but the decline has already begun against major currencies, e.g. JPY: http://www.xe.com/currencycharts/?from=USD&to=JPY&view=1Y Also checkout the dollar index: http://www.marketwatch.com/investing/index/dxy

[rmrm]

My point is that other currencies are not static. All the world economies are jockeying to have relatively weak currencies, in order to attempt to spur inflation and ease their debt loads. It's all relative. The US is not in some particularly bad spot, certainly Japan and Europe finance ministers would trade places with ours any day of the week. We have a remarkably strong economy (and everything else, really) in comparison (which is all that matters).

[shostack]

So what happens as it spreads then? The dollar continues to tumble but asset prices still keep going up?