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

To: jimmg who wrote (49918)	1/16/2006 5:45:43 PM
From: GST	Read Replies (2) \| Respond to of 110194

That is the fallacy of the deflationists. They assume a closed economy in which our demand falls and so prices go down. But the opposite is the case when your currency is falling -- prices go up. You can look at the history of any banana republic to validate this. Look at Mexico as the peso went off a cliff. Look at the Philippines -- take any country you like. Then try to find any country with a massive currency account and a low savings rate that has ever in human history experienced deflation -- and of course you won't find any.