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 (60264)	5/4/2006 11:31:40 AM
From: booyaka	Read Replies (1) \| Respond to of 110194

But it is possible that those who are playing this crazy game are right if in fact inflation is going to accelerate and persist. Those betting on inflation have the odds on the their side. The only way the US gov't will be able to honor its debt obligations and future liabilities (e.g., SS & medicare for baby boomers) is to inflate them away. The only way that deflation happens is if the Fed/gov't screws up or is overpowered by debt deflation. It could happen but from a strictly probabilistic standpoint, inflation is more likely than deflation simply because the gov't needs inflation and has tremendous power to make sure it happens.