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


To: Silver Super Bull who wrote (11396)4/6/2004 11:08:11 AM
From: russwinter  Read Replies (1) | Respond to of 110194
 
<offset the negative effects in the economy with substantial monetary injections - perhaps glimpses of Bernanke's "helicopter drop" come to mind.>

Do that and you get the crack up boom and the flucht in die sachwerte (flight to real goods), far beyond what we are already seeing. You get to present your consumers with $50 oil, etc, because economic players like OPEC won't tolerate being paid that way. Do the Chinese need more worthless money like this? I don't think so, they are actually trying tp prevent inflation and asset bubbles. At the same time your economy just collapses under the difficulty of all this inflation. Importantly, it would destroy the USD, perhaps permanently, as nobody will accept this jeezum as real money.



To: Silver Super Bull who wrote (11396)4/6/2004 11:08:14 AM
From: mishedlo  Read Replies (1) | Respond to of 110194
 
I know, it may sound crazy, but it seems like every time a crisis of any type arises the result is aggressive monetary injections.

Exactly
Why would anyone expect the next time to be different?

M



To: Silver Super Bull who wrote (11396)4/6/2004 1:36:44 PM
From: Claude Cormier  Read Replies (1) | Respond to of 110194
 
< know, it may sound crazy, but it seems like every time a crisis of any type arises the result is aggressive monetary injections. >

In the end, it is better than alternative deflation. People feel good when their homes increase in value... until the top.