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

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To: mishedlo who wrote (21491)11/8/2004 1:27:53 PM
From: JBTFD  Read Replies (3) of 110194
 
The biggest argument for me about inflation is the increase in money. They want to increase the debt ceiling by some $600 billion, which they predict will be spent by next September. That represents a little less than a 10% increase by next September. All that money has to go somewhere. And since there has not been a corresponding rise in products, the cost of the existing products will rise.

The second factor is that if a time comes when people realize that money is losing value, they will spend money they have as quickly as possible on tangible assets. This to me is the sign that hyperinflation is kicking in.
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