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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: UncleBigs who wrote (49521)	1/12/2006 1:08:30 AM
From: kris b	Respond to of 110194

If we get hyperinflation first then a deflationary collapse, then the inflationists won the argument. I agree, but IMO it is veeeery unlikely. I don't think that the Fed and FCB want the repeat of Weimar Republic. If they do then we are all doomed, inflationist and deflationists alike. Despite increasing nominal value, the intrinsic/real value of all assets collapses in hyperinflation, as buying power of the population disappears. Germans and others at that time learnt that capital gets destroyed in hyperinflation too. Is Bernanke mad? I don't think so. They might try the war economy though. Repeat of the 1941-1945 period

To: UncleBigs who wrote (49521)	1/12/2006 3:40:42 AM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

Every hyperinflation must end in the economic collapse, because when the new currency is introduced, a Central Bank has to have a very tight money policy for people to regain trust in the currency. It means high interest rates, restrictive lending, mortgages only with 30%+ downpayment.