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

To: ild who wrote (50292)	1/19/2006 5:56:10 PM
From: GST	Respond to of 110194

<deflation is... a rise in the purchasing power> Precisely -- Mish has this idea that the US dollar will be even more valuable after the housing/credit bubble bursts. It is elementary that our massive debts to foreigners will not allow for a rise in the purchasing power of our currency in the event of the bursting of our asset bubble. Simply put, the purchasing power of the dollar and dollar denominated assets is set to fall in coming years on global markets. Foreigners will not be prepared to give us even more of their goods and services in exchange for a unit of our debt-debased currency than they do today.