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


To: westpacific who wrote (50085)1/18/2006 9:46:12 AM
From: damainman  Respond to of 110194
 
When the futures were down so much, Cnbc was asking if the market was over-reacting. They should've been asking that when the market was rallying on basically hot air!



To: westpacific who wrote (50085)1/18/2006 10:06:49 AM
From: Mike Johnston  Respond to of 110194
 
This in fact is the biggest pitfall of a deflation theory.

New debt is not necessary to increase money supply, the Fed can increase money supply through elimination of old debt, of course this only is possible in a socialist system.



To: westpacific who wrote (50085)1/18/2006 10:07:00 AM
From: Mike Johnston  Read Replies (1) | Respond to of 110194
 
This in fact is the biggest pitfall of a deflation theory.

New debt is not necessary to increase money supply, the Fed can increase money supply through elimination of old debt, of course this only is possible in a socialist system.

And that is where we are headed.
In socialism, economy is centrally planned and price hikes are decreed by government.



To: westpacific who wrote (50085)1/18/2006 10:44:00 AM
From: Mike Johnston  Read Replies (3) | Respond to of 110194
 
It is ironic, that a decade after collapse of communism, with many countries enjoying their new freedom and free market systems, this country is going in the opposite direction.