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.

Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Gary H who wrote (16366)	12/3/2002 3:26:24 AM
From: sea_urchin	Respond to of 81913

Gary >The U.S. economy is not quite in deflation. But it is getting close enough IMO, the US economy is in a kind of "corner". Because of the overwhelming debt it needs inflation to revalue the assets against the debt in order to prevent a debt crunch. However, even if the printing continues at an accelerated pace to create inflation, unless the official indices of inflation, eg the gold price, show there is inflation, there isn't any. All that will happen is the excess money will go into bubbles. Meanwhile, because the cost of production is kept down, largely because of cheap Chinese manufacture, deflation is looming all the time. Furthermore, the dollar can't devalue because the Euro and Yen, its principal counterbalancing currencies, are being kept as cheap as possible because their relative economies are so bad.