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

To: Valuepro who wrote (263909)	7/26/2010 1:38:11 AM
From: Skeeter Bug	Read Replies (2) \| Respond to of 306849

>>Well, imho, deflation will cause more debt to go unpaid and the value of "BIG MONEY" holdings will drop further.<< since 2008, the whole game has been to offload their toxic assets onto the american people and to have the government guarantee basically everything they didn't off load onto the tax payer. i can't think of a better way to prepare for a deflationary collapse than that. the banks get paid in full, the people are buried in debt and the banks buy up 10x to 20x the real assets with the money they stole from the people. BRILLIANT in the mind of a criminal! >>On the other hand, inflation will cause a lot debt to be paid off earlier - because present psychology is in that direction -, then a bit later rising interest rates will simply allow "BIG MONEY" to redeploy.<< i don't think so. you hold debt in an inflation, you pay down debt in a deflation / collapse type scenario. >>Not once since the Great Depression has monetary stimulus failed to advance inflation.<< not once have we had the largest credit expansion like we've just went through, either. you can't compare apples to oranges. >>During the Depression, as noted earlier, there were structural differences that, when compared to present circumstances, point us away from deflation.<< deflation hit hard during the depression. banks closed, people lost everything. food went bad on farms while others starved because there was no money to pay for transportation. i've heard millions starved to death during the depression. i also understand the bombing of europe's industrial capacity and their reliance on our productive goods is ultimately what got us out of that depression. well, our manufacturing capacity has been gutted and europe and other nations have intact manufacturing capacities - so that won't help this time around. again, apples to oranges. >>The other day I bought a box of crackers at the super market. I did not notice until I opened it that for the second time in as many years, the box was smaller, though the price was about the same if not higher. Also, I opened a box of trail snack bars recently purchased at Costco. Same price, but the product was about 20 percent smaller than my last purchase. My utility bills keep going up, costs for clothing, food, and on and on. Where is deflation except in housing prices? Are rents falling?<< housing is down big and is the #1 expense for most households. guess what? it has a looooooong way to go down. gas is about 50% cheaper than its all time high (albeit, short lived). entertainment is cheaper - i bought a day ticket to universal studios and get in free all year long! i'd also add that what we've seen so far is probably about 15-20% of what i see coming. tell me how inflation is going when unemployment is 30-40%, food stamp rolls are north of 80 million, housing is down another 40% in price and rates spike up as even the deadest door knob realizes america is flat *ss broke. again, the criminal banking cartel is in control of money and credit. i've heard about 95% of purchasing power is credit - and credit spends like money on the way up. on the way down, though, credit goes away - it no longer spends like money. that's a lot to "go away." this isn't a new process - the bankers have been shearing the sheep for centuries on end. “The new law will create inflation whenever the trusts want inflation. From now on depressions will be scientifically created.” (Congressman Charles A. Lindbergh, after the passage of the Federal Reserve act 1913.) “The new law will create inflation whenever the trusts want inflation. It may not do so immediately, but the trusts want a period of inflation, because all the stocks they hold have gone down... Now, if the trusts can get another period of inflation, they figure they can unload the stocks on the people at high prices during the excitement and then bring on a panic and but them back at low prices.…The people may not know it immediately, but the day of reckoning is only a few years removed.” (Congressman Charles A. Lindbergh, referring to the Federal Reserve act, Congressman Lindbergh stated this a few years prior to the stock market crash in 1929 which ushered in the Great Depression Congressional Record, Vol. 51, p. 1446. December 22, 1913.) ourrepubliconline.com i also recommend you view "the money masters" for the true history of the criminal banking cartel vs the american republic. video.google.com i'm not saying i'm right or wrong - we are all just laying down odds as to what the powers that be will do. where we go is based on their decisions. i can't see them devaluing their wealth mechanism (primarily the federal reserve debt note) to a significant degree. they will play games and make money trading, but the dollar may well be the best looking horse at the debt based glue factory (for the time being, anyway) - as queasy as that may make us all feel.