Dollar Gains on Prospects Fed Will Succeed in Sparking Inflation

Hello Scott,

That’s MOPE. It often raises suspicion from one’s common sense. Still, if the headline (or variant of it) is repeated often, suspicion can quickly turn into acceptance as human instinct to join the group is strong.

This is why the fear of deflation is pushed so hard. If deflation is to be feared, then inflation, a byproduct of currency devaluation, must be good. Currency devaluation as a solution to mitigate the debt burden of the previous economic expansion is never good for a currency. Your common sense instincts are correct.

RY,
Eric

Eric,

Thanks for all you do! If you have time, would like to get your comment on what I thought was a bizarre headline from bloomberg/businessweek:

Headline: Dollar Gains on Prospects Fed Will Succeed in Sparking Inflation

I don't really get this... sounds like saying "Home sales surge on expectation of falling prices."

Source: businessweek.com


-Scott