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

To: TH who wrote (98243)	10/3/2008 11:12:55 AM
From: whistler3000	Respond to of 110194

Musings from Eric Sprott today: This is why we are quite skeptical of claims that a global recession will be deflationary. Ceterus paribus that may be true, but all bets are off when massive bailouts are in the works. We’ve believed, and continue to believe, that as long as central banks continue to do what they do best, print money, then the logical economic result will be stagflation. History shows that exchanging cash for paper is always inflationary. It means the money-dropping helicopters are in full flight. We continue to believe that the ultimate outcome, at least for the United States, will be much higher interest rates (and much lower bond prices) for US government debt. How can it be otherwise? It’s the inevitable outcome when a central bank loses credibility. sprott.com