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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (70517)	4/15/2005 6:29:51 PM
From: Bid Buster	Read Replies (1) \| Respond to of 94695

The thing is we have been inflating since the early '70's since nixon withdrew us from bretton woods accord, and as I'm sure you've seen everything went parabolic from there. That $1000 loan 15 years ago is now only worth $683 today. You don't think the fed will inject massive amounts of liquidity to stave off deflationary pressures from defaults? There certainly isn't any checks and balances in the system to prevent that with our fiat system. Theres only 2 ways to deal with massive debt.. 1. to do nothing and let it run its course, the end being deflation from no monetary injection 2. run the printing presses 24/7 to keep up with or exceed the default contraction, and thus wipe out those on fixed income that really no one cares about anyway as most are retired and thus contribute little to the fascist state. I think the later is more likely and has also been the trend for the last 34 years. As for saving the indebted home owner it won't come from deflation but maybe and its a big maybe from inflation and higher home equity prices that go with it.. Thus old debt gets written down and replaced with new debt that has ten fold more zeros behind it. At some point it all ends with deflation but historically it usually starts with inflation.