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

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To: westpacific who wrote (49856)1/16/2006 2:59:14 PM
From: kris b  Read Replies (1) of 110194
 
When this deflation really kicks in, it will run its course, no one will have the power to control other than free markets"

Right on. Even Japan with massive savings (20% of the disposable income is put away but Japanese every year) of the population couldn’t end the deflation for 15 years. They are the creditor nation to boot. US not only doesn't have any saving but and is biggest borrower in the world.

You need willing borrowers and lenders to transmit the liquidity into the economy. In deflationary depression you have neither. Printing/creating credit by itself doesn’t do any good.
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