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

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To: J_Locke who wrote (35071)6/30/2005 1:52:58 PM
From: mishedlo  Read Replies (2) of 110194
 
The hyperinflation scenario is pretty simple. The government starts issuing $5,000 tax "rebate" checks to every American, while the fed monetizes a like amount of debt on the back end. This won't happen until the country has been in recession for a year or two, but it will happen.

Pretty simple - I agree
Unfortunately it is pretty illogical

#1) The FED does not issue tax rebates
#2) It is not in the best interest of banks and creditors to bail out consumers at the expense of the creditors

Simple yes, extremely unlikely as well.
Look at the bankruptcy reform bill that was passed.
It is in the OPPOSITE direction of what you claim will happen.

It's a very flawed theory and is not gonna happen.

Try again.

Mish
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