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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: valueminded who wrote (6610)5/18/2004 3:37:13 PM
From: Peter Joseph  Read Replies (2) of 116555
 
Hi Chris, Re: Deflation is a virtually impossible endgame when consumers spend.

What if consumers get to the tipping point where they cannot borrow any more?

Even with ultra-low (lower than today's) interest rates.

Even with predatory lending (ads on Christian radio stations on how you can unleash the power of wealth using RE leverage).

Re: So I have a difficult time seeing deflation as likely.

It's not here yet. What we now have is hyperinflation. The popular theory goes that this precedes deflation.

i still believe it. No country has printed (inflated) it's way out of economic malaise. Think Argentina.
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