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Inflation on the horizon?

With interest rates now at 0%, no requirement to hold reserve assets by banks, and QE on the order of hundreds of billions, do you think there is a risk for (hyper)inflation?

I've read several of your articles discussing why the financial crisis didn't result in inflation, but it's one concept that never really set in... Most other events accompanies by a lot of QE did result in inflation.

I'm curious what your thoughts are on what will happen this time?

I also wonder if this crisis will end up being the severe exogenous event that causes hyperinflation (although I doubt it at this point).

I would also like to know Cullen's suggestions on how his recommended $800 billion in deficit spending would best be spent.

Sorry for the slow response. CRAZY TIMES. Plus, we had a baby on March 7th so it's been nuts....

I still don't see much inflation risk. Commodities are down 30%+ across the board here. This event is massively deflationary. All the Fed and Tsy policies are barely going to offset that.

Remember, QE is just asset swapping. It's not money printing in any real sense of the words. The deficit spending is more akin to money printing, but in an environment in which we're gonna lose 5T of GDP and deflation is looming I don't see how 2T of deficit spending does much....

"Pragmatic Capitalism is the best website on the Internet. Just trust me. Please?" - Cullen Roche