[pjc50]

When talking of inflation we really do have to recognise that monetary expansion only causes wage/goods/services price inflation when there is too much money chasing too few things to buy. At the moment, the real markets are all over the place but it looks like there is huge physical production capacity which is idling. Inflation risk through demand is low.

It is quite hard to have inflation without either near full employment (can't hire workers without increasing wages) or forex problems (foreigners stop wanting dollars which seems .. unlikey)

What this is mostly doing is stopping a huge property crash. Maybe that's overdue, but it would also mean ruining the retirement of a lot of the middle class.

[imtringued]

It was too obvious to notice for but thanks for explicitly talking about it. I always wondered why the insane cash injections of the fed never reach the general public. Surely at some point some of that money is going to be used for payroll but that point of time never came because everyone is underemployed.

[nradov]

Inflation is also a matter of expectations. Everyone is expecting a huge wave of loan defaults in the next year, not just home mortgages but all types of loans. Due to the way that fractional reserve lending works, defaults reduce the money supply just as surely as shredding $100 bills.