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

To: NOW who wrote (88598)	11/7/2007 1:58:42 PM
From: GST	Read Replies (2) \| Respond to of 110194

Deflation is declining price levels. It is possible for credit contraction to lead to deflation. It is not happening now at least in the areas we could broadly call "consumption" and it is highly unlikely that it will happen, but it is possible. In the current environment, credit contraction is causing inflation to spiral out of control -- just speak English and the conversation will make some sense -- leave pointless jargon aside. If you think that the credit contraction will cause deflation -- spell it out. If you think the credit contraction will cause inflation, as I do, spell it out. It is a free country -- intelligent people will differ. But needless jargon is not conducive to a lucid conversation.