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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Think4Yourself who wrote (97534)5/18/2009 12:02:43 AM
From: Provider  Read Replies (1) of 116555
 
"OK, that makes sense to a large degree, and in normal historic situations I would probably agree completely. The problem here is that we just popped the largest bubbles in the history of the planet. The furriners are saying enough. They are cutting way back on their Treasury purchases, which means the Fed can't find buyers for all the dollars they are printing. The national debt is also going through the roof as private mistakes become public debt. At some point soon people are going to want a lot more dollars for their goods/services."

I agree with all you are saying. I just think we have to get through this nuclear holocaust that has just decimated the financial system as we know it. Demand has stopped throughout the world. Our creditors will want more money at some point, but who knows how long it will be before that and the huge deficits will go hyperbolic. And it will, but I think we are still clinging to the lifeboat in trying to right the system. Once some kind of equilibrium is reached, then the inflation will come to center stage. And I don't know if that is a week, a year or 5 years away because of the absolute mess we currently find ourselves.

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