2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 375.93

-1.8%

Nov 14 4:00 PM EST

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To: TobagoJack who wrote (43754)	12/12/2008 1:37:55 AM
From: Night Trader	Read Replies (1) of 217802

From an email to a friend: It now seems clear that the central bank is determined to try to rescue distressed "homeowners" (debt-owners more accurately) by inflating their debts away no matter what the cost to $ holders might be. They want to help the profligate (and hence encourage more profligacy) at the expense of savers in the belief that deliberate inflation will counteract accidental deflation. Which will be the stronger is hard to say but my suspicion is deflation will win somewhat over the short term (year or two) but inflation will then reappear in force like a 1970s B movie monster. The central bank's enemy is paradoxically seen as the value that others put on their product (the dollar) and the aim is to make owners of it (like bank account holders) poorer as fast as possible. Nothing is really solved by all this printing of course (how could it?) but it rearranges the economic winners and losers more to their liking. As bad economic news continues to accelerate (the 2nd derivative is negative if you like) the monetary response is likely to be increasingly desperate.

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