Thanks To Japan We Know How Central Banks Can Control Inflation - Seeking Alpha

Thanks To Japan We Know How Central Banks Can Control Inflation - Seeking Alpha: This is a passage from my article on Seeking Alpha. I think gold bugs and others may find it interesting:

So, if we use the Japanese model to show what would happen in the U.S., I don't think that Ben Bernanke worries about inflation. I don't think he will allow MainStreet to be flooded with money. And certainly, while this will hurt the people, it will keep the system going for a long, long time. American debt is denominated in dollars, so that the appreciation or depreciation of other currencies has no effect on U.S. debt.

Japan is like the U.S., in that Japan won't run out of money. And those who fear hyperinflation in the U.S. can look at Japan and think no hyperinflation.

Buying gold to hedge against inflation is almost a scam under this scenario. Gold is pretty. Gold is collateral, not quite perfect. But as a hedge against inflation, it isn't needed!

Am I saying the people in the nations should be happy with this scenario? We have the BOJ forcing insurance companies and pension funds to buy bonds, and we have pension funds and insurance companies here, in the U.S., taking bad collateral off the books of the banks.


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