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 : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: UnBelievable who wrote (1705)	5/22/2003 10:15:15 PM
From: yard_man	Read Replies (2) \| Respond to of 4912

Deflation is the result of the liquidation of the ... mistakes brought about by easy money. Kinda like a fire sale or something ... the difference is negative feedback which reinforces the trend of the prices of certain assets. Your problem is?? All the printing -- debt expansion -- a depreciating currency -- imply increasing prices?? Printing?? At some pt the printing stops as it becomes demonstrably ineffective -- Debt expansion forever?? debt expansion requires people willing to take on more debt because the percieve it as advantageous -- at some pt that won't be the case. Depreciating currency a source of price increases?? -- got competitive devaluation -- don't forget the USD is the world's reserve currency. Lots of other coutries depend on us buying on credit ... OR You got a problem with the idea that POG can rise in a deflationary environment. I guess you need to think about what is deflating and why -- if there is really a contraction or more correctly a deceleration in the expansion of debt what kinds of assets are going to depreciate. First and foremost are those items that are connected with the debt that is deflating -- housing?? yes. autos?? sure Now what about in the corporate sector ... -- hold on I'll be right back