QE2 was meant to bring about inflation.
I think the inflation trade will continue to stay with us again.
This is apparent that the US wants to do something about their DEBTS and the best way to solve it is by creating inflation!
How does this work in simple terms…
$1 trillion of loan made today…
With INFLATION, the US can make $1 trillion worth only $0.8 trillion in the future, and thus it is cheaper for them to pay their debt.
Imagine if the US did a hyper inflation! The $10 trillion debt can be wiped out in just one day!
The idea is to stick with the inflation trade. The US dollar will ultimately devalue again. The EURO will be back to the 1.40s
The US ppl are rich again… so many gamblers at The Borgata Atlantic City
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