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: mishedlo who wrote (74950)	12/7/2006 9:38:29 AM
From: GST	Read Replies (1) \| Respond to of 110194

Mish, I have yet to hear any logic from you concerning Japan. If there is a direct opposite to our situation it was Japan in 1990. Japan's central issue was and continues to be how to keep their currency low enough in value to continue their high savings export oriented economy. Our central issue has been and continues to be how to keep our dollar from crashing to continue our no savings import oriented economy. They absorbed fifteen years of deflation to put an upside price cap on the the yen. We are absorbing inflation in a vain attempt to keep the dollar aloft. If and when the dollar breaks down this will in no way shape or form be deflationary -- on the contrary, it will be very inflationary while at the same time throwing us ito a recession. The probability for continued and worsening inflation in the US is very high indeed. The probability of deflation is very low. If we slip into recession it will simply push our rate of inflation higher to the extent that a slowing economy will undermine the dollar. Growth is what has kept the dollar aloft all this time. Japan is a picture perfect example of everything that the US is NOT.