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: GST who wrote (38168)	8/9/2005 10:52:19 AM
From: Tommaso	Read Replies (3) \| Respond to of 110194

Drop replying to Mish if you like, but please do not drop posting on this thread. I think that your views reflect the most likely developments now that the world is entirely serviced by fiat currencies. When bank reserve requirements were tied ultimately to gold deposits, true deflation could occur in countries that honored that kind of discipline. Deflation is highly unlikely under fiat currencies. Deflation occurs because people want to hold money as a store of value--an increasingly valuable store in the 1930s. The only place that is going on now is Japan, where the ethic of saving is very strong. I cannot see habits changing enough in the United States to make possible a Japanese-style deflation. I certainly COULD happen, just as it COULD happen that everyone would suddenly decide to turn the entire country into a nudist colony. I think Mish's arguments are for a condition about as probable as mass nudism. He gets somewhat overexcited at times.