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

To: mishedlo who wrote (62214)	5/30/2006 2:25:44 PM
From: John Vosilla	Respond to of 110194

"We all know hyperinflation is just around the corner" Nah just a persistent rise in costs of goods and services you and I need on a daily basis. good catch by Les and this is going on even in Charlotte Message 22497526

To: mishedlo who wrote (62214)	5/30/2006 2:31:51 PM
From: westpacific	Read Replies (4) \| Respond to of 110194

Mish is correct, deflation will win. Patience. Housing and Stocks will all be killed. And what will this do for demand. All other prices will follow in accord. West

To: mishedlo who wrote (62214)	5/30/2006 2:47:57 PM
From: Mike Johnston	Respond to of 110194

High inflation is a monetary phenomenon. Hyperinflation is a psychological one. We already have had very high inflation over the last 5 years or so, due to Central Bank printing presses. Whether or not we will have hyperinflation depends on how much longer high inflation rates will continue and whether average Joe wakes up, dismisses official propaganda and finally flees the currency. The Fed wants to maintain high inflation, but without this turning into hyperinflation, that is the reason for "no inflation" propaganda. It is quite possible that we might have deflation and hyperinflation at the same time, for example an indebted homeowner behind on his adjustable mortgage and rapidly increasing property taxes might be defaulting on his debt and losing his job and a home, while at the same time a wealthy businessman liquidates his bank accounts and buys gold and foreign currency to avoid a collapse in the dollar and possibly freezing of bank accounts by government or in the extreme case confiscation of assets.

To: mishedlo who wrote (62214)	5/30/2006 3:55:41 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 110194

I read in a report published by J. Turk that in the Argentinean crisis of the late 1990's, there was monetary deflation as money stocks were lowered by 30%. However, prices of goods skyrocketed as the peso still lost purchasing power despite the monetary deflation. Demand for pesos simply collapsed faster than pesos were destroyed. You think foreigners will hold all their USD in the coming years? You think Americans will hold all their USD in coming years?