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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: Mike Johnston who wrote (34579)6/28/2005 3:40:48 PM
From: Wyätt GwyönRead Replies (2) | Respond to of 306849
 
Under current system, deflation is not possible, since the Fed has the capacity to create unlimited amounts of new money.

tell it to the Japanese.



To: Mike Johnston who wrote (34579)6/28/2005 3:52:45 PM
From: KyrosLRead Replies (1) | Respond to of 306849
 
>>Fed can actually increase money supply through destruction of credit if for example they buy and then liquidate either government or private obligations in bailouts<<

This will most probably destroy confidence in the currency and bring about hyperinflation and the destruction of the US and global economies. The Fed will never do such thing.