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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: THE ANT who wrote (259072)	7/7/2010 5:49:49 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

We already tried debt inflation under Reagan, Bush, Clinton, and Bush. Prices zoomed out of control, financial bubbles came and went. Deflation shrinks these inflated prices back to normal. Obama has to wake-up to the need for deflation. I'm sure it's something he's heard repeatedly from Paul Volcker. The Fed has not increased Permanent Reserves for decades, which is the type of currency inflation you're referring to. Generally, the wealthy have never fared well during a currency inflation, and America is controlled by the wealthy, which explains why America has not experienced any extreme of this type of currency debasement. The system is rigged to provide long-term inflation through debt creation, at a rate somewhat less than interest rates, so investors are ahead of inflation by real growth. Since 1980 we have grown debt much faster than economic growth and it has to be unwound. .