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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (259607)	9/9/2003 4:04:01 PM
From: ild	Read Replies (1) \| Respond to of 436258

Date: Tue Sep 09 2003 14:51 trotsky (Bookmark, 10:09) ID#377387: Copyright © 2002 trotsky/Kitco Inc. All rights reserved clearly, hyperinflation is the least likely prospect. it would only become likely if the central banks were to alter their modus operandi significantly, and began to monetize the mountain of debt ( including private sector debt ) that is likely to go into default in coming years. for a variety of reasons this is highly unlikely to happen - for one thing, how would they determine what types of debt to monetize ( and thereby cancel ) and what types of debt to leave out? more importantly though, as soon as the markets were to become aware of such a harebrained plan, the imminent collapse of the underlying fiat currency systems would be assured. this would leave the CBs powerless - and they would never do something that might entail their own demise ( as desirable as this would be for the rest of us, leaving aside the hardships that would no doubt be created once the system falls ) . therefore one must conclude that the coming 'debt reconciliation' will be deflationary in nature - again it appears unlikely that the current mountain of debt can be expanded much further, as it has already reached an all time high relative to GDP that surpasses the previous record posted in 1929 by a huge margin. furthermore, the world is inundated with industrial overcapacities ( one needs only to look at the sorry state of US capacity utilization ) , so no-one has any pricing power. this goes not only for corporations, but for labor as well...everybody's with their backs to the wall.