Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: mishedlo who wrote (101087)	8/20/2009 5:17:21 PM
From: Amark$p	3 Recommendations Read Replies (2) \| Respond to of 116555

Thanks for your comments. I am trying to better understand your position on how US reduces its total credit market debt as % of GDP from 376% to a more reasonable and sustainable level of about 175%. Under your hypothesis of deflationary spiral: 1) how many years will it take for 376% to be brought down to 175% 2) how exactly will this debt level be brought down (e.g. default, via US savings of 10% per year for the next 20 years, or some other means). 3) will US somehow grow its GDP significantly via new technologies so debt comes down relative to GDP 4) some other means to reduce this debt to GDP ratio...? Thanks for your time and consideration in providing insights on how the US actually reduces its credit market debt as % of GDP over the coming years. (I am assuming you believe this 376% level is not sustainable in the long term / I do not wish to put words in your mouth / just want to understand your position in this regard). Thanks.

To: mishedlo who wrote (101087)	8/21/2009 6:51:08 AM
From: Dan3	1 Recommendation Read Replies (1) \| Respond to of 116555

Re: Japan tried to induce inflation for years and failed. But it's still important to consider the possibility that government will do something that produces inflation (both types). Print up and send $100k to everyone with a social security number, and you'll have inflation overnight. Granted that those currently in charge would never even consider such a thing - they'll distribute a few billion to each of their buddies, but would never do anything that would benefit workers, small businesses, and the country at large. The helicopter drops to date have been limited to a few cronies of Bernanke, Geithner, and Summers. But we could get a change, at some point. After all, it's been 105 degrees in the pacific northwest, this summer, so maybe we'll someday see a change in our government. Or, more likely, not. :-(