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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (106919)	1/9/2010 10:50:31 AM
From: dave9	1 Recommendation Read Replies (1) \| Respond to of 110194

Where's the part where the government raises the tax rate to 90%, confiscates physical assets and conscript the rest for the war effort.

To: Chispas who wrote (106919)	1/10/2010 1:07:11 AM
From: Skeeter Bug	1 Recommendation Read Replies (1) \| Respond to of 110194

i don't get this guy's logic. his whole article is about massive debt reduction and concludes this will lead to hyper-inflation. debt is money. if debt is reduced, the money supply is reduced. if the money supply is reduced, you can't have hyperinflation. i believe the government did QE fro the sole purpose of saving banks. once saved and out of the path of the fiscal frankenstein they created, i think they unleash it onto the people so they can buy up assets at pennies on the dollar (after being paid out by the people at 100 cents on the dollar). the massive debt implosion in the article seems to support this thesis, yet his conclusion is the exact opposite. i'm not saying high or hyper inflation can't happen, but it surely won't happen as money supply is destroyed. now, if the government disassociates debt from from money creation, katie bar the door - but i don't think they do anything like that until after the banksters are back out of dollars and into assets. again, this protects the banksters (at public expense, of course). can anyone explain why my thought process is wrong?