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 (12231)	4/19/2004 9:26:32 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

In a world awash in overcapacity and cheap labor, it is absolutely 100% impossible for us to "inflate our way out of debt" short of giving away money to people to pay off their debts. I hope you can accept that statement as fact but if you do not then state the case. Now, assuming they would try such a thing, who would be the winners and who would be the losers. Obviously money would be next to worthless if they did that but more to the point... debtors would be happy to have their debts paid off but creditors would not exactly be happy being paid off in worthless dollars. Thus.... Would this govt of the rich and powerful for the rich and powerful turn around and screw the rich and powerful? (screw the creditors - big banks and big business just to bail out the debtors?). I do not think so. Now, perhaps we have some major social upheval, and congress prints enough money for everyone to get out of debt but I guess I would have to say that is a low probability event. Outside of that, I doubt we get to the point where this debt can ever be paid off. There is too much of it and wages as I suggested will NEVER rise to the point where it can be paid off. Short of bankruptcy/default this debt is here to say and will be wiped out 100% for sure in a deflationary massacre. Mish