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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (72755)	12/24/2007 2:53:42 PM
From: Tommaso	Read Replies (1) \| Respond to of 116555

>>>A third question is the destruction of credit which is what we have been discussing<<<< It looks to me as if the central banks are just as determined to prevent the destruction of credit now as they were determined to force the liquidation of debt in 1930 (in the interests of what they then took to be sound monetary policies). This current protection of debtors will, I think, be inflationary because debt will remain on the books of the banks, functioning as money, although money with continually (and more rapid) loss of purchasing power in terms of commodities and eventually in terms of wages. Much to my dismay, Bernanke turns out to be much closer to his caricature as Helicopter Ben than I had imagined. But the ECB is looking just as bad.