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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (10677)	8/25/2008 4:47:04 PM
From: GST	Read Replies (2) \| Respond to of 71456

Excellent point John. Inflation and the tight credit it engenders slows the economy, but you should never expect a slowing economy to send us into a period of deflation -- certainly not when that economy relies on growth to maintain its foreign borrowing capacity and depends on its foreign borrowing capacity to keep its costs down as we do. It is so basic -- as our national credit score goes into the toilet the price we pay to borrow money and buy goods offshore soars. We clearly have a slowing economy -- a recession that will be prolonged by the debt crisis. But to say that it is a period of 'deflation' when what is meant is 'recession' is to think with the clarity of a man with mud on his eyes and mush in his head. Even now as inflation soars we hear people saying that we are now well into a period of 'deflation' -- such nonsense.