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To: Cogito Ergo Sum who wrote (201085)7/18/2011 7:24:41 PM
From: heinz44  Read Replies (1) | Respond to of 313061
 
They could come to a debt ceiling agreement.. end QE... and focus on getting competitive

No, they could NOT.....how without QE to infinity do they take care of the banks....cities...states....pension funds etc??tax receipts getting less and less
Once stared there is no stoping unless of course you take the country into bancruptcy issue new money and start all over again
Political suicide that is



To: Cogito Ergo Sum who wrote (201085)7/18/2011 8:03:11 PM
From: Terry Maloney1 Recommendation  Read Replies (1) | Respond to of 313061
 
Certainly cash in a deflation, but you're missing my point, I don't think it's in their interest to do so ... better to inflate their debt away with a little gunboat diplomacy.

When all is said and done, inflation is good for debtors, bad for creditors ... deflation just the opposite, bad for debtors, good for creditors. Which one would you choose if you were pirate nation with the most dominant military in the world's history? <g/ng>

There's no way they can be competitive with India and China on anywhere near a level playing field, given those nations recent advances in engineering and science, so that's a nonstarter imo ...

Still, we might see a hell of a scare in the short term, maybe worse ... it's going to be interesting to see who those tea party congresscritters sell out, their base or their owners.