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

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To: Crimson Ghost who wrote (9337)3/4/2004 2:28:26 PM
From: mishedlo  Read Replies (5) of 110194
 
In the final analysis sustained deflation is impossible under a fiat money system if the powers that be are REALLY determined to prevent it no matter what.

I disagree
Unless someone borrows it, it goes nowhere and does nothing.
Now, if the FED printed that money, gave it away for the sole purpose of everyone paying off all their debts, we would quickly get to hyperinflation after those debts were wiped out. But, if they just try and get people or companies to borrow more and no one does, or they go deeper in debt as a result of it, it accomplishes nothing.

Mish
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