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To: SwampDogg who wrote (85884)	11/16/2003 1:12:16 PM
From: skinowski	Read Replies (1) \| Respond to of 209892

I hate assigning myself into any "camp", but I do think that the government will try to inflate the way out of debt. Deflation was "allowed" to happen in the 1930's, and no one liked it, so, this time around, according to the Rule of Alternation (as it were), they'll try to inflate. The paradox here is that high rates destroy liquidity - and bring about results which are in many ways similar to deflation. Think about an extreme example - Germany in 1923. People were overloaded with worthless paper, but "real" money, meaning something which could serve as a store of value (and means of exchange, like gold, dollars, etc.) was very hard to come by.