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

To: michaelrunge who wrote (62944)	6/7/2006 11:47:40 AM
From: UncleBigs	Read Replies (1) \| Respond to of 110194

the hyperinflationist's argument seem to be that they are sure the Fed will print money like crazy to avoid deflation. that may be true. however they will be doing so in a deflationary crisis. Fed printing to bail out the banks and prevent a total collapse of the system will be done out of desperation. that means there is a lot of credit/asset deflation between now and then.

To: michaelrunge who wrote (62944)	6/7/2006 12:36:26 PM
From: GST	Read Replies (2) \| Respond to of 110194

Put this in an international context and explain how a country with a current account deficit of nearly $1 trillion per year and total obligations of $50 trillion could under any circumstances have its currency appreciate over the long haul and maybe you have something. Until then, this is the sort of analysis that leads you to completely misguided conclusions about the direction of our economy. Bernanke cannot chose deflation, he can only decide how to best to deal with inflation.