With the winding-down QE2 which ' Flation rule date?

At the end of the reported or at least, to stop the QE is exactly what the deflation camp has been waiting for.  (Well ... sort of.  Because some of the ample liquidity is going to the hanging, "QE2". 5 "format.  "Remember when Bernanke claimed that, after the Fed would eliminate an additional QE1, liquidity from the system?)Regardless of the results of the June, the Treasury is a cool billion to $ 100 plus Finance on a monthly basis, without the assistance of the Fed, at least for now.  And emerging markets and options contracts for crude oil contracts, the home of the newly printed money to be not nearly 100 billion dollars a month.  This will start the return of the nation in 2008, deflation?

In the first place, is expected to see what we * think * we know.  Ben Bernanke became the Felix Zulauf, such as the history of the first Central banker to actually say that he wants to go up stock quotes.  And he made a stock!

Food prices and Energy prices ... and. .. With the other stock markets, etc.  We have a lot of inflation in the United States of nShny here, because as I learned last month while traveling in Asia, inflation has been America's leading export last year!

Industrializing Asia increasing, countries which boast of more favorable as a whole, and inflationary pressures, as we have the Western countries (especially in Europe and the United States) has been taking Bernanke n brunt QE.  Here in the United States, we have been getting squeezed higher food and Energy prices, but the service is based on prices and wages, has largely stopped, as does the pricing power.

Looking beyond the next five to 10 years are the fundamental reasons why Asia should continue to grow and why food and energy prices should continue to increase.  There is also the fundamental reasons why Europe and the United States is likely to slow the growth of the economies, at best, and why they attract some of the aging population and the natural deflationary environments headwinds, their economies (such as Japan post-1990).

Wild card is of course the money printing.  Bernanke made sure me and other deflationists, find the stupid in the past 24 months.  Correct, the game was to buy traditional inflation hedges such as gold, commodities and money-printing on the Launcher.

And in the next five to 10 years, I think it is very likely that we will see more turns of the QE.  The atmosphere is now against the Fed continue to print, but when things are likely to roll over again, they should be enough to support the patenting of printing-presses.

QE2, for me, it was crazy.  It should have been in the past, the first of the QE2, glaring red flag, all of which were the tilt.  The world was ending.  But the 20% drop in stocks on the God of fear the Fed that if they are not to "do something", as the case may be, upon the economic rapture should.

History shows this rhyming.  Andrew Dickson White in excellent Fiat money inflation (hat Tip to Dr. Evil rec) in France, the profiles of the traditional political roadmap for the French hyperinflaation the late 1790 's.  They will be printed once and it seemed a little better for the economy.  They stopped and things turned down.

Thus, they printed a second time.  And things went a little better, but not as much as for the first time.  Gee, who knew of the funding was like heroin!

But now, the French Government was on the hook, they will be printed in the til-Jim Rogers, I would say, they ran out of the trees.

I do not know, for example, the Government printing money for children's historical literature disseminated throughout Europe, and then stop.  It is the abuse, which is very difficult to break.  So in the long term to continue printing money seems to be the most likely attack scenario.

But what about in the short term?  We are very much in the second bout could not get deflation.  And commodities and stocks of 2 + years of one way to carry out on-the-sky winded into, this may be the best time to take in order to take account of inflation hedges, pile.

NET-net, we are lucky, investment, that we do not need to be performed on each trade.  I like Jim Rogers take agriculture best.  Over the course of the next 10 years, it has an ascending fundamentals.  The prices will continue until a new supply line and that takes time.

Continuous printing of money to the world, unfortunately, but fortunately we can Add some of the investors, the ag is extremely sensitive to fuel price increases in grain.

Summary of inflation or deflation?,  It depends on, and really, it does not matter either.  In the medium and long term, the food and energy prices will continue until a new supply line.  Emerging and growth of the market is facing inflation, while in Japan, Europe, and the United States is likely to see the Dichotomy that deflation, inflation.  Until and unless we see a "qe Infinite" is Marc Faber is a pleasant message.

Regardless of how this all plays agricultural displays most of the day, the wager in question was me on board sound card.

Related reading: our exclusive interview with Jim Rogers in Singapore-commodities-China

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