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To: Bid Buster who wrote (207266)	11/29/2002 12:08:06 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 436258

When someone takes out a loan, money is created. When someone defaults on a loan, money is destroyed. If you have a bunch of people/businesses/countries defaulting on loans at a greater rate than money is being created (by new loans being taken out), you would have deflationary pressure.

To: Bid Buster who wrote (207266)	11/29/2002 4:12:33 PM
From: Oblomov	Respond to of 436258

>>what impairment of assets? Hmmm... I do recall some discussion around here of record-high property foreclosures, chargebacks, and defaults on South American sovereign debt. >you seem to think my statement of U.S. goods and services >inflation is funny ..but yet you don't point out how my >assumption is wrong Please take no offense, I wasn't laughing at you. You stated that everything that is not imported is inflating. I do not think that the data support that statement. >just a handful of sectors that contribute little to GDP. It's more than a handful. What about the sectors like tobacco, that are inflating due to tax increases and civil suit payouts? Do you only consider the inflating sectors to be significant in terms of production? Since when is tobacco a vital component of GDP? >i'm happy to hear you produce more than you consume...are you a farmer? Not directly, unless you count farmland ownership... in any case, production is not comprised only of bringing commodities to market. Value can be added or subtracted on a net basis anywhere in the supply chain.