Silicon Investor (SI) -- The First Internet Community

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 : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: edboyl who wrote (60773)	5/2/2002 5:46:02 PM
From: Ron Dior	Respond to of 99280

Ed read this.. I don't have time to get into it but this is something to ponder. biz.yahoo.com Ron Dior

To: edboyl who wrote (60773)	5/2/2002 5:51:23 PM
From: ItsAllCyclical	Respond to of 99280

Deflation vs Inflation. Think about it from the standpoint of debt. Both consumers and corporations have gorged themselves on debt during the last 10 years. In an inflationary environment the cost of having the same level of debt goes down over time (assuming interest rates stay relatively flat) since the dollars originally borrowed are worth less. In a deflationary environment it takes more $$$ to pay off the same level of debt. Deflation & debt is a killer scenario and that's what we've been seeing the last 2 years. Asset prices go down, earnings go down, but your debt level (apparent) increases. Gold rising in not necessarily a sign that Greenspan has injected enough liquidity into the system. Gold's rise has more to do with lack of confidence in the money system that uses fiat dollars imho (at least so far).