Comments on: What do you think of Mr. Drummonds comments? http://www.gregwilliamson.ca/uncategorized/what-do-you-think-of-mr-drummonds-comments/ Canadian and Alberta Real Estate and Mortgage Market Information with a slant toward positive comments in light of all the negative information out there Mon, 02 Jan 2012 19:35:08 +0000 hourly 1 http://wordpress.org/?v= By: Greg http://www.gregwilliamson.ca/uncategorized/what-do-you-think-of-mr-drummonds-comments/#comment-63 Greg Sat, 28 Mar 2009 19:33:58 +0000 http://www.gregwilliamson.ca/blog/?p=251#comment-63 I have a new position on this after talking with some friends yesterday. There is a really good chance that inflation will not be effected with the increase of money supply by the US. The US through this crisis has proven that the greenback IS the global standard and as such there are too many other countries (insert China) that will have to big a motivation to ensure the US dollar does not tank. I honestly think that is why Bernanke is printing so much, because he knows that he is safe. China and others will continue to prop up the dollar and thus inflation will hold in check. If US inflation hold and therefore their interest rates stay low (again with the debt they have they are clearly motivated to keep rates low) then the same will happen in Canada. Will rates go up? yes, likely but not catastrophically and not until well through 2010. I have a new position on this after talking with some friends yesterday. There is a really good chance that inflation will not be effected with the increase of money supply by the US. The US through this crisis has proven that the greenback IS the global standard and as such there are too many other countries (insert China) that will have to big a motivation to ensure the US dollar does not tank.

I honestly think that is why Bernanke is printing so much, because he knows that he is safe. China and others will continue to prop up the dollar and thus inflation will hold in check. If US inflation hold and therefore their interest rates stay low (again with the debt they have they are clearly motivated to keep rates low) then the same will happen in Canada.

Will rates go up? yes, likely but not catastrophically and not until well through 2010.

]]> By: Alyson Thiessen http://www.gregwilliamson.ca/uncategorized/what-do-you-think-of-mr-drummonds-comments/#comment-62 Alyson Thiessen Sat, 28 Mar 2009 19:15:52 +0000 http://www.gregwilliamson.ca/blog/?p=251#comment-62 I am an economist and I think that if our Governments are injecting huge dollars into our economy in order to increase the money supply inflation must follow. I agree with you about rate increases because the only tool the govt has in its pocket to stave off inflation is rates...now, as a keynesian...this interference by the govt in the free market is the reason we are in this boat today. Markets never get to decide..if they did, GM would already be dead. I am an economist and I think that if our Governments are injecting huge dollars into our economy in order to increase the money supply inflation must follow. I agree with you about rate increases because the only tool the govt has in its pocket to stave off inflation is rates…now, as a keynesian…this interference by the govt in the free market is the reason we are in this boat today. Markets never get to decide..if they did, GM would already be dead.

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