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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 (98255)	10/3/2008 2:48:12 PM
From: benwood	2 Recommendations Read Replies (1) \| Respond to of 110194

I, for one, cannot simply put Heinz's words out of my consciousness, that it is "rare" for a country to inflate it's way out of a debt bubble despite the the intention to do so. Amazing about the bailout: if 700 billion is a-kilter, then 700 billion with some serious tax cuts is A-OK. Now, again, can somebody explain to me why we pay income tax??

To: NOW who wrote (98255)	10/3/2008 2:48:51 PM
From: GST	4 Recommendations Read Replies (1) \| Respond to of 110194

I don't have to try to convince myself -- I just look at the last fifty years of uninterrupted inflation in the US -- we have seen period when inflation was high and periods when inflation was relatively low -- but we have not seen deflation and we sure as hell are not going to see it now. There is no risk of deflation -- but there is a serious risk of inflation spiralling out of sight in coming years. We owe trillions, we continue to print and borrow trillions and we have tens of trillions in unfunded liabilities -- we are in the process of bankrupting this country -- and bankrupt countries never, ever, ever deflate -- they inflate. Have fun pretending there is even a case to be made for deflation, much less any factual basis -- but you will be the one living in a dream world.