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 : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (4741)	1/10/2004 10:18:55 PM
From: yard_man	Respond to of 110194

>>this does not strike me as inflationary, although for other well-documented reasons i expect inflation in energy prices, and eventually food<< exactly -- debt collapse is NOT inflationary. Sure energy will be more expensive and food will be more expensive relative to assets supported by easy debt BECAUSE demand for these is rather price inelastic, whereas debt supported stuff (peculiarly) only has increasing demand as prices continue to increase. But we have to have food to live and you have to have energy to have food and to stay warm. Is it any wonder they exclude the "volatile" segments from the CPI and have taken out the primary item supported by debt, housing. "volatile" == always going up, so we don't want to include. But the result of debt bubble bust is going to be a contraction of economic activity. It is the failure of printing/debt expansion to produce increasing prices for debt supported assets, that is the killer. Then debt quits expanding and it is over. Doesn't matter what Bush or anyone else wants -- including AG or Foreign CBs. When it is time for the bubble to burst, it bursts and they can only watch. Folks who think that governments can manipulate things until some specific date, e.g. election are fooling themselves. Think about it -- what changes after the election, that would make politicians comfortable with the illusion ending. If they have control (as some falsely assert), it can never end.