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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: russwinter who wrote (2067)3/15/2004 10:35:56 AM
From: Wyätt Gwyön  Read Replies (1) of 116555
 
However, people don't need income to fuel this inflation, they have access to plenty of cheap, under priced borrowing power to fuel it

seems you are conveniently forgetting that they have already availed themselves of record amounts of said buying power. they need income to service this debt, and debt service is already at a record percentage of DPI. they can't take on more, pushing on a string and all that... without income growth much needed by an overindebted consumer, all commodity spikes sow the seeds for a massive recession and deflation.
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