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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 (34585)	6/28/2005 4:40:23 PM
From: KyrosL	Respond to of 306849

Low interest rates is not the same thing as debt cancellation via money printing. I don't think they lead to hyperinflation in an environment of huge global labor surplus, rapid worldwide productivity increases, a stagnating population in many key consuming countries, and free trade in goods and services.

To: Mike Johnston who wrote (34585)	6/28/2005 9:16:09 PM
From: mishedlo	Respond to of 306849

Tell me what would happen in 1980 if Volcker instead of raising fed funds to 13% had cut them to 2% ? This has NOTHING to do with 1980! That is a KEY fact that people miss. Do you have any idea how fast my wages were rising in 1980? It was staggering. Wages were rising to keep up with rising oil prices. It was a very inflationary period. Oil has gone up from $25 to $60. Show me where wages have gone up accordingly. The fact is you can't. That is the difference between now and 1980 and it is ENORMOUS. The key deflation argument is poor job growth, falling wages, a rising debt bubble, and a property bubble. That is a very lethal combination. Mish