QE2 Money is Starting to Flow

Here is another indication that some of Fed QE2 money is starting to flow into the system, up to now most of it has been sitting as excess reserves.

Citigroup has been hiring dozens of investment bankers, dialing up advertising and drawing up plans to add several hundred branches worldwide, including more than 200 in major cities across the United States. The bank is in the middle of stitching together its disparate technology systems - a mammoth effort known internally as Project Rainbow - and spending more than $1 billion a year to keep up its prized global transaction services franchise, reports the SF Chronicle.

If this trend continues, the resulting price inflation is going to be fierce---I'm thinking double digits.