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To: donc who wrote (264006)	7/26/2010 12:46:40 PM
From: koan	Respond to of 306849

>>..it's really as simple as Debt/GDP.. when there is no debt as FDR had it i think, Keynesianism works fine.. but that debt string has played out..deflation will rule.. donc>> It is my understanding that they will not allow deflation, as they do not know exactly how to deal with it. That is why Ben Bernanke is called helicopter Ben. He said he will could drop money out of a helicopter to prevent deflation. They will force inflation if they need to, to prevent deflation. I expect a sort of stagflation going forward. Like the late 70's.