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

To: gregor_us who wrote (20733)	6/9/2009 8:06:41 PM
From: skinowski	2 Recommendations Read Replies (1) \| Respond to of 71463

deflation in wealth and debt feeds inflationary monetary policy--which then further feeds the deflation It is quite clear how deflation panics "leaders" into embracing inflationary policies. Politicians love to "fight" things - that makes them important and adds to their power. I'm not sure I quite grasp how money printing feeds deflation. Would appreciate if you could expand on that a bit - thanks.

To: gregor_us who wrote (20733)	6/9/2009 10:37:43 PM
From: THE ANT	Respond to of 71463

Yes,deflation of assets relative to wages is a given.The more the FED inflates the more the real value of assets goes down. Message 25704628

To: gregor_us who wrote (20733)	6/9/2009 10:45:07 PM
From: jazz_lover	1 Recommendation Respond to of 71463

"Because we will get nasty doses of both. At the same time." I agree. I think the two (inflation and deflation) are always tied at the hip. You can't have one without the other because they are relativistic terms. The yin/yang balance is constantly changing and self correcting. Nature abhors a vacuum. They cancel each other out making the "whole" never-changing although we can choose to focus on one and ignore the other, but the fact remains one would not exist without the other. all imho. JL.

To: gregor_us who wrote (20733)	6/9/2009 11:40:41 PM
From: axial	Respond to of 71463

"...soon the deflationists and the inflationists can smoke the peace pipe...Because we will get nasty doses of both. At the same time." Nobody has got it right so far; no shame in that. Too many contingent variables, too fluid. Buying time was the design, and it worked. So far global collapse has been averted. The whole process could take another year or two. Eventually, we'll work through uncertainty about how and when to dealing with clear consequences that won't soon change. We know they're coming, but we're not there yet. Jim

To: gregor_us who wrote (20733)	6/10/2009 1:13:22 AM
From: nonrev	1 Recommendation Read Replies (1) \| Respond to of 71463

Several years ago TJ said something that stuck me as being the essence of the matter. I am paraphrasing but it was something like this. ............. "Inflation of everything you need, deflation of everything you own" Tobago Jack .............. So much insight distilled in a small statment. Rgds nonrev

To: gregor_us who wrote (20733)	6/13/2009 6:01:32 PM
From: axial	Respond to of 71463

Contractionary phase. That covers it all: inflation, deflation, rising costs for energy and commodities, shrinking disposable income. The post-war era of expansion was largely financed by virtually unlimited access to cheap energy. That began to change with the first oil embargo of '73; every subsequent spike has had an adverse economic effect, and re-appearance of rising energy prices (and therefore rising costs of everything else) is a certainty, especially when viewed against global population growth. Globally, increased debt (often an outcome of deficit spending and current crisis mitigation) with rising energy costs will strain performance of all but the strongest economies. In terms of readiness for coming realities, the US's enemies could hardly have done more damage than the US has done to itself. Contraction is here. Jim