tag:blogger.com,1999:blog-11027528911364475.post8163177842540926154..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: What Stinkin' Inflation? PPI EditionJakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-11027528911364475.post-74021049133964341252009-11-18T04:47:20.309-08:002009-11-18T04:47:20.309-08:00Your explanation does make sense. However, I expec...Your explanation does make sense. However, I expect that we will have inflation. I think that we will not continue to recover the way we have been unless the government continues to borrow at the same rate we have been borrowing. <br /><br />Eventually, there will not be bond buyers so eager to lend us their money, at least not at the rates that they are receiving now. Would it really be unreasonable for a significant portion of buyers to hold off buying bonds until the rates rise to something that allows them to not feel overextended on US IOUs?<br /><br />If money becomes more expensive, that will put some pressure on prices to rise. If the government stops subsidizing purchases, will there be enough consumer demand for items to keep the economy moving? <br /><br />I don't come close to having the answers, but we have had a stock bubble, followed by a commodities bubble, and we were recently experiencing record high bond prices. <br /><br />Should any of us be surprised if the price of bonds has a similar reversion to the mean?Rogue Medichttps://www.blogger.com/profile/07598646309630074992noreply@blogger.com