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Strategies & Market Trends : The coming US dollar crisis

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To: John Vosilla who wrote (7004)5/6/2008 1:16:42 PM
From: SouthFloridaGuy  Read Replies (1) of 71456
 
Yeah but you can't point out single instances and use that as confirming evidence, but then rule out other things.

The inflationists and deflationists both have it right currently. That's why people coin the term stagflation, it's easy for the intellectual lazies.

But the deflationists have it more right in assessing the overall macro implications, downside risks, policy choices, etc.

I mean c'mon, think logically, if there is inflation, then rates should be at the double digit rates everybody talks about. Furthermore, if there is currently inflation, default premium would be low because inflation would simply eat away at the nominal value of debt.

Inflation is a debtors' best friend.

Instead, we see opposite. Risk free rates are low and default premium is high.
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