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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 454.29+6.4%Feb 3 4:00 PM EST

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To: Cogito Ergo Sum who wrote (67713)11/2/2010 1:42:05 AM
From: Hawkmoon  Read Replies (2) of 220006
 
Good interview!! Thanks!!

Again.. consumer demand (ie: velocity of financial transactions) is the key to inflation. Get cheap money, and high velocity, and we have major inflation issues.

But the Fed can pump money into the system until the cows come home unless they can create financial velocity.

And since so much velocity is debt based, and people are de-leveraging/defaulting at such a dramatic pace, deflation is more likely than inflation.

But when that velocity level returns and the Fed is forced to drain liquidity from the system, that's when inflation could rear its TRUE ugly head.

Hawk
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