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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Bid Buster who wrote (267308)11/14/2003 12:02:15 PM
From: mishedlo  Read Replies (2) of 436258
 
This is it in a nutshell.
How does printing $ help those that are bankrupt.
What happens to the velocity of $?
What happens if housing collapses?

If you believe housing will collapse and job losses will continue (the latter causing more of the former) and peopl e walk away from mortgages you simply HAVE to believe in deflation.

If you still expect commodities to rise in that environment that you have Stagflation and the worst of both worlds.

I do expect a high demand from china for wheat beans copper (?) beef etc etc but falling stock market prices, falling home prices etc etc and more bankruptcies.

Japan could not defeat deflation and neither will we, regardless of how much $ we print.

We have too much debt and too much trade deficit and too much govt spending. What happens when those correct?
DEFLATION.

M
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