Lately, my posts have become more about the warnings of government actions and their longer term effects on mortgage rates.  Ultimately, I have been talking about increased inflation, the mortgage rate bubble, and mortgage rates breaking into double digits, all of which could very well happen in the not-so-distant future as a result of Paulson and Bernanke's actions, along with continued "economic stimulus" packages.

Many have questioned why I am talking about rampant inflation when the chief concern right now is deflation?  I have eluded to the answers in my posts, however I have not been able to come up with a great analogy.  Well, as much as I would like to say I came up with this one, I didn't and actually found it in a place most of you have not even heard of, the Taipan Publishing Group.

Yes, the best analogy I have seen to date was presented by Justice Little, where he used rabbits running around a tree to describe monetary velocity, which is quite stagnant right now and the reason the Treasury and Fed are printing money left and right.  here is how he describes it...

To read more, head on over to Florida Mortgage Report...