Dan Denning takes issue with the idea that the Fed will be able to mop up the excess liquidity caused by its monetary expansion. Foreign savers are not going to keep funding US deficits forever. And that means the Fed must print more dollars to raise money. And that is super inflationary.

This from The Daily Reckoning Australia

Now to the big subject of the day: Inflation. You’d think evidence of even bigger deficits in the U.S. is clearly inflationary. But not everyone thinks so. The new prophet of doom, Dr. Nouriel Roubini, says at least four factors are setting up what he calls “Stag Deflation” (as opposed to the stagflation of the 1970s, where you had no growth and rising prices).

Roubini’s four forces of Stag Deflation are: a slack in goods markets, a “recoupling” of the rest of the world with the U.S.

While one rock star, Barack Obama, gets ready to accept his party’s nomination for president in front of 75,000 screaming fans at a football stadium in Denver, a real rock star, Paul McCartney, has a greed to a performance in Tel Aviv. McCartney will make a pretty penny for the gig. According to a report in Globes:  “The cost of bringing ex-Beatle McCartney to Israel will reach NIS 30 million (about $8.5 million), half of which will go to McCartney and his promoters, while the other half will cover production costs. At a price of NIS 1,500 ($425) for a front row ticket and NIS 500 ($142) for a place on the park itself, the promoters will have to sell 50,000 tickets only to cover the cost.”

They are expecting over 70,000 people to show up. Of course this is without taking into account any sponsorship money.

McCartney will pull in