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

To: GST who wrote (75020)	12/8/2006 8:30:43 AM
From: TobagoJack	Read Replies (2) \| Respond to of 110194

in any case, between argentina and zimbabwe, i hope the electorates choose wisely, in so far as sequencing goes :0)

To: GST who wrote (75020)	12/8/2006 1:45:21 PM
From: NOW	Read Replies (2) \| Respond to of 110194

you still seem confused about what deflation and inflation represent

To: GST who wrote (75020)	12/8/2006 2:58:53 PM
From: Mike Johnston	Read Replies (3) \| Respond to of 110194

Deflation is about as likely as an asteroid strike -- not zero, but close.......... The odds of inflation are almost not worth discussing -- the issue is how bad it will get I agree with you regarding odds of deflation. The 1929 moment was back in 2000/2001 after bursting of the biggest stock market bubble in history. The Fed did not let the free market perform the cleansing process. They chose the path of inflation. Real estate prices tripled. Now, there is no going back, 10% inflation going forward for the next decade is the best possible outcome, but not likely. The Fed will print money. The odds are higher for inflation to rise to perhaps 15-20% with the worst scenario being hyperinflation. Right now the US is exporting a lot of inflation. The dollar would have already collapsed much lower, if not for foreign intervention where FCB's print their own currency to buy dollars. The consequences of inflationary policies could be catastrophic for the economy long term. In 20 years this country could look like Brazil, with 1/3 of population living in inner cities in extreme poverty and 1/3 "middle class" just living paycheck to paycheck. The richest 10% will live in gated communities with electrified fences, afraid of crime, robberies and kidnappings. The corruption will soar, the standard of living will decline. Every branch of every bank will have an armed guard inside. ( Brazil is a beautiful country with a lot of warm and kind people)