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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 409.23-1.0%Jan 7 4:00 PM EST

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To: TobagoJack who wrote (50240)5/20/2009 11:49:21 PM
From: energyplay   of 219096
 
Player # 2 makes an excellent point about the immense debt in USD, and the effects it will have.

There is a possibility (maybe 10-15% ?) that there will not be enough printing in the next few years to devalue the dollar significantly. So we could have a Japan-like weak deflation for a number of years.

Number of years may be a number n, ranging from 0 to ?
n may be as large as...10 (lost decade)

Note that Japan tried a number of moves and could not easily get out of deflation.

Note that this would also mess up a large number of people.

**********

Should swine flu or some military activity occur which impacts trade, the world would be pushed into a flight to safety and deflation.
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