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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: GST who wrote (65349)7/7/2006 8:27:12 PM
From: skinowski  Read Replies (1) of 110194
 
to assume that our poverty will lead to global price declines is a leap of faith that might be misplaced.

I'd have to say that I am agnostic on this issue. Yes, it might be a mistake to assume that a slowdown in the US may spread globally. Otoh, this may indeed happen. It would take having a Maxwell's demon inside one's head to figure this out with certainty.

Traveling in Eastern Europe in 1992, soon after the demise of the USSR, I saw a free fall price inflation in local currencies, while prices were at ridiculously low levels - and falling - in Dollars and other stable currencies. Unemployment was very high, and whatever economy they had, was falling apart. Call it StagInDeflation.
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