ezspkns,
An old war story I know, but last time we had a serious deflation, during the 30's, the gov't confiscated gold and then raised the gold price 25% or so. Confiscation I don't see happening again, civil disobedience would result, the law would not only be ignored it would be flaunted.. Deflation is the monster they will never let out of the basement, it's a cultural horror to the US. With the amount of debt in our country on all levels, down to the fast food clerk, deflation would be suicide if they allowed it.
OTOH, if they worry about it, and they should, because I agree that it looks like a reasonable conclusion fundamentally, especially in light of Japan's experience, then all the better. The deflation alternative should make a little inflation AND a freeing of gold manipulation a much more palatable option for the powers that be.
Hear that one AL? Remember your roots, soooo long ago.
Best Regards,
Roebear |
