Its the difference between driving into a wall at 20mph, and smacking into it at 80.
Its the difference between driving into a wall at 20mph, and smacking into it at 80.
RE: the monetary base has doubled in TWO years, rather than eight
Many investors are believing that inflation has not been ignited because the CPI does not reflect it.
What we should consider is the funds are caught in the BANKING SYSTEM and not spreading among the populace.
And as you show, M1 is up 6.2% Year ove ryear; and, in the last two months, the compounded annual rate of change in M2 is 7.4% !!
Although these single-digit increases do not yet indicate runaway inflation, a program of relentless quantitative easing will be similar to your analogy — a driver smacking into a wall at 80 MPH.
Thus far, Bernanke has not shown any will to hit the brakes.
I believe anyone with good sense will be crazy to ride the US treasury yield curve.