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

To: Real Man who wrote (101067)	8/20/2009 5:05:25 PM
From: andiron	Respond to of 116555

what we have to ask is the quandary of the bond holders since that's the real thing. Inflation will be first flagged by the bond market as no one would like to own dollar asset while dollar is taking a severe hit (as it would in higher inflation-lower rate scenario)...But higher bond rates will kill the economy that benny boy has dreamt of nurturing...so its a dilemma no one knows how it ends..inflation is so far a possibility not a probability.

To: Real Man who wrote (101067)	8/20/2009 8:22:13 PM
From: axial	Respond to of 116555

- snip - "We have said often that just as society couldn't spell ‘inflation’ in 1937, it has no clue what causes deflation now. That's beginning to change in the aftermath of the housing and credit collapse, but try to explain the deflationary forces contained in debt liquidation or global manufacturing over capacity or a socio-economic trend towards savings, and the notion of ‘deflation’ gets fuzzy for most thinkers (even Warren Buffet). That doesn't change the fact that the deflationary forces are enormous (and current) and the policy-induced reflationary forces are a partial antidote." zerohedge.com Jim