SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: ballsschweaty who wrote (67790)8/19/2007 4:02:40 PM
From: pogohere  Read Replies (1) of 116555
 
he will literally have to drop money from helicopters onto the front lawns of millions of people. Loaning more money to his banking and Wall Street cronies won't cut it.

Exactly. So my question is: unless the above happens one way or another, how will retail sales and the price level be maintained or rise? I.e., how do we get to an inflationary effect on prices via this reliquification?

In the inflation of the late 1970s, there were unions bargaining for higher wages regularly, and getting them. So consumers had the wherewithal to pay higher prices. They also had savings and much less encumbered assets. Today, all of these factors are missing in action. What then keeps us from a deflationary repeat of the Depression even if the banks and hedgies are reliquified?

The irony here appears to be that Bernanke, a "student" of the Depression, is in the position of having to deal with a bank run by funds on banks that is eerily reminiscent/analogous of/to the bank run in the Depression by individuals.

If real cash doesn't show up shortly in the hands of consumers, substitute forms, i.e., precious metals, will have their day in the sun, albeit only for a season, just as they did in the 1930s.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News