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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 371.65-1.1%4:00 PM EST

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To: TobagoJack who wrote (48441)4/11/2009 3:44:50 AM
From: pogohere  Read Replies (2) of 217831
 
There's quite a race going on:

It appears there's a lot of paper money being created, but it has very little velocity and the multiplier effect is hardly in evidence, what with so few borrowers who qualify for loans. The credit crash appears to be washing out current efforts to inflate. The price rises I see seem to be a matter of trying to make up for lost revenue, rather than a response to lower purchasing power. For example, the state of Washington is about to raise tuition at state universities by 14% per year for the next 2 years. This reflects a decline in state revenues.

I expect to see exponential declines in all economic measures by this summer, resulting in what I expect will be for most people a genuine "shock and awe" deflationary episode. Hyperinflation is out there somewhere, but I think we get a real bust to the bottom first.
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