Mish's Global Economic Trend Analysis Message Board

STOCKTALK

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.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: pogohere who wrote (101032)	8/19/2009 9:05:38 PM
From: Real Man	1 Recommendation Read Replies (2) of 116555

Yes, I understand what happened, and the financial system would completely collapse, were it not for the Fed. The effect would have been very deflationary. If the Fed did not print or extend credit or do anything like that, 90% of all banks would fail, the unemployment would be a lot higher, and a deflationary depression would commense. On the other hand, if the Fed printed 60 Trillion (which is done by mouse click these days) and monetized all debt, we would definitely have hyperinflation. They were some who claimed the Fed would NEVER monetize an amount as high as 1.75 Trillion, or guarantee 14 Trillion in debt. But they did. Sorry, but monetary policy is crucial under fiat money. The difference between inflationists and deflationists is really their faith in what the Fed will do. So far inflationists are getting an upper hand in that guess work, the Fd proved not to stop at anything to prevent credit blow up.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next