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: John Vosilla who wrote (82247)	5/30/2007 4:51:53 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

That is what we always hear, that food prices are up because of bad weather, or drought, or ethanol, or frost. There is only one reason that prices go up in the long run: printing money. If the Fed/Boj did not print so much money, oil would still be 15 bucks and we would not be talking about ethanol. I think he will change his tune just before money becomes worthless. To me dollar is already worthless. Tripling of house prices, tripling of metals, tripling of taxes, doubling of food........ You have to be blind not to acknowledge that we are witnessing the mother of all inflations.

To: John Vosilla who wrote (82247)	5/30/2007 4:57:04 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

The only people who will suffer more than Brazil-americans in this debacle will be the ones who wait for deflation that never comes and get wiped out in the process. You wait for deflation = you get wiped out in inflation In a fiat money system the only way you will get deflation is after the money that is subject to government excess is repudiated by the general public.

To: John Vosilla who wrote (82247)	5/31/2007 10:30:24 AM
From: Horgad	Read Replies (2) \| Respond to of 110194

Personally, I am not so bold to predict either outcome. Straight to hyperinflation or a credit implosion leading to deflation...either outcome is possible depending on how the administration reacts. Also the fact that many things are inflating now, does not in any way invalidate the deflation argument. In a way it even supports it. Joe Six Packs are getting squeezed from every direction by inflation, but they are seeing little inflation benefit (no more house inflation, extreme lagging wage inflation). As a result Joe Six Packs are getting pushed closer and closer to insolvency everyday (deflationary). Of course the wildcard is that the gov. can print all the Joe Six Packs back into play with a flick of a switch. IMHO people would be well suited to accept both hyperinflation and deflation as possibilities and plan accordingly.