What you guys don't understand is that this country needs inflation. If you're in debt, inflation is your friend. This country is the world's largest debtor nation, and nothing but inflation will make this mountain of debt go away. Lower interest rates, debase the dollar and let the foreign holders of US debt securites eat crap. The only alternative is a deflationary death spiral.

See my post under "Where will the wealth come from?"....

And once again, that's exactly why you should buy physical gold and silver....

Inflation is only helpful if the debt level stays the same, while real inflation pushes up wages. Debt levels have been much rising faster than inflation, and wages have not kept up with inflation.

Let me give you an example: my monthly mortgage is 24.4% of my monthly take-home pay. Provided that my taxes don't rise too much, every time I get a raise, my debt service burden goes down. However, if I'm forced to take a pay cut because inflation of industry-critical metals and gasoline cuts into the money available to pay me, inflation hurts me.

I have a feeling that credit-induced inflation will not boost most wages. Meanwhile, an 8% loan is a VERY bad deal unless *wage* inflation is clipping along at 8%. It is not.

is what we had during part of the 1970s and early 80s, and is one reason that housing prices were able to rise so much. What were the bubblists thinking this time around? The fundamentals never did warrant housing's biggest bubble.

The true Americans 100% understand what is going on: very greedy government officials are overspending and cut a deal with the Fed bankers to allow it. In exchange, the Fed gets to reward their banks with the national treasures thanks to the black magic of fractional banking. This is not well and good because every dollar printed can multiply into 100 dollars and every single one is a direct theft from those who work hard and save in this economy. The Fed wants to create a hyperinflation society and with the run-up in housing the last two years truly has. Their desire is to steal the wealth of Americans. The National Debt is NOT the responsibility of the average American because neither he nor she was the benefactor.

Only a gambler or an insider on this ponzi scheme would call for more hyper-inflation. The Fed will annihilate the dollar if they fulfill their promise to prop up housing prices at all costs. They were mistaken when they stated they would use housing to drive their policy. Over a few years they were able to drive hyperinflation but all ponzi shcemes have an ending. Better to end with a housing bubble pop than a complete dollar meltdown. But the Fed is working for the latter. Only by that can the dollar be eliminated and replaced with a new system such as the Amero, North American Union, or other systems. Just ask the Greeks how well their currency fared when the EURO was established. The Fed is pushing poverty on Americans and Americans think this has something to do with loan sharks!

over the last several years I meant.

Also, the true end of the Fed here is to transfer money from the national treasures and into the member banks. The subprime meltdown is the latest excuse. Despite what Americans seem to think the Fed is a private organization (ruled as such more than once in US courts) and controlled by the member banks. The Federal government does appoint some officials but has much less control than one would expect. Central banks were railed against by many of the founders of this country and for good reason. Americans are paying the painful price of ignorance and unwillingness to remove the cancer.