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


To: mishedlo who wrote (102582)9/29/2009 12:37:25 AM
From: Skeeter Bug  Read Replies (1) | Respond to of 116555
 
mish, i don't recall you answering what happens after this deflationary period ends (we agree we are in deflation now - with the notable exceptions being the stock market and the value of the dollar, anyway).

with inflation defined as a rise in prices (a very imperfect definition, but one j6p can see very clearly).

american debt is through the roof - already $1.25 million per non retiree household above the poverty line. by the time all the extra programs get passed and the unemployment lines fill up, that will be over $1.5 million lickety split.

the fed is already monetizing half of the us debt load.

i see deflation for some unknown period of time, but i think the end game has to be inflation as inflation is a stealth way to transfer wealth from the citizens to the government *and* reduces the actual debt owed - something near and dear to the united states government in order to avoid an armed revolt.

what was japan's debt to gdp in 1989 when their mess started?

i'll bet it was way less than our ~90% debt to gdp as we get started in this process.