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.
Politics : Welcome to Slider's Dugout
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: SliderOnTheBlack who wrote (10805)7/17/2008 12:53:37 PM
From: jim_p  Read Replies (2) of 50101
 
On the issue of inflation vs. deflation the one item that stands out for the bear case on gold/inflation is the fact that the main driver for the increase in M3 was the historic expansion of credit over the last several years to levels that were unimaginable.

The de-leveraging of the financial system that is now in full swing, and will most likely takes years to accomplish, will result in credit contraction and M3 should contract over this extended time period unless the fed prints money to counter the credit contraction?

My guess is the fed will try to avoid deflation by trying to inflate the economy, but the forces of de-leveraging from the two largest bubbles in history will be very difficult to overcome and thus should be bearish for gold.

Jim
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News