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Are the Obama Investments towards Strengthening Socio-Economic Foundation Really Going to Cause Hyperinflation?

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Are the Obama Investments towards Strengthening Socio-Economic Foundation Really Going to Cause Hyperinflation?

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Hi All: Thanks for the Great answers so far. Raphael & James & David: Especially after your answers, the way I am seeing: the Govt social investments are going to REPLACE the (now fallen) flow of credit into people’s hands (via Home Equity and Credit Card lines) WITH income from Govt/Quasi-Govt jobs. But with the “flea bite” of an outlay as David describes it, this replacement will only be partial, and not quite enough to rebuild the vaporized demand for goods and services. Rather than from the Stimulus expenditure, perhaps the real threat of hyperinflation is from the ‘nascent’ “investment cash” waiting on a stockmarket rally – it might instead end up in commodities speculation to cause the prices to spike. You might want to respond on another question I have open on that topic: http://www.linkedin.com/answers/finance-accounting/economics/FIN_ECO/425734-13794005?

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