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

To: Elroy Jetson who wrote (109222)	10/18/2010 2:10:51 PM
From: GST	1 Recommendation Read Replies (1) \| Respond to of 110194

A very interesting article -- and no question it could teach us lots about the future we now face. But there is a tendency to forget some of the fundamental divergences between the Japanese experience and our own. When you look at all the differences it boils down to one thing: the yen stayed strong, whereas the dollar will crumble. We can go over the reasons for this (and I have often written about it on SI), but when you take into account the difference between the perpetually strong yen and the perpetually weak dollar -- the future for us is not going to be deflation. Instead, we will be forced to endure stagnation -- just as Japan has been forced to endure stagnation. And we will have the darkness that hangs over a society with shattered dreams of wealth. But the backdrop will not be falling prices -- our lost decade (or two, or three, or four), will have roaring inflation as its backdrop.