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

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To: ild who wrote (50281)1/19/2006 3:42:31 PM
From: mishedlo  Read Replies (3) of 110194
 
I am consistent.
Deflation is a decline in credit and money supply.

In Japan that decline in credit happened faster than the BOJ's attempt to pump up money supply. Velocity on money collapsed.

I maintain that is what will happen here, which of course makes the US$ a sideshow, at least to me.

My position allows for oil prices to rise because of peak oil or whatever. In fact, I think rising oil prices would make the other problems worse as in increase the number of bankruptcies.

Mish
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