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


To: yard_man who wrote (42816)9/28/2011 8:36:49 PM
From: TH  Respond to of 119360
 
pg,

Yes, that is a factor.

The inflation and deflation debate has been played out. But, from time to time I like to revisit a couple of key ideas.

1. We are not Japan. What is different? Long, long, list, but at the top, we are consumption monkeys and our system requires. I think of it this way, we stop consuming, and the revenue just dries up at an alarming rate. What does the Treasury have to do? Float more paper. That is ultimately good for gold and real good soon, as the world is a bit tired of all that paper. Short term Tim and Ben can play the game of push the clownie up, but just over the horizon, a whole lot of holders are wondering, "was that 2.8 tick on the Thirty THE top?". And there will be more wondering to come.

2. Even if there is not MORE from the Fed, the systemic debt is a time bomb that is going exponential. Gold over the medium and long term, will win, as the rest of the growing world population is not programmed to hate it and they may not play along.

3. Lose the inflation play and unemployment in the USA is going to rocket again, starting with all those fuzz-heads in the finance game.

What we have is a temporary pause. It won't last long. And inflation is very possible when the rest of the world helps us play along, and they will, because a lot of the rest of the world is sick of our game.

GT
TH



To: yard_man who wrote (42816)9/28/2011 10:19:09 PM
From: Roads End  Read Replies (1) | Respond to of 119360
 
It is an interesting question.

What would your forecast have been in 2005 or 2006 if you were told we would print $2.3 trillion over night?

Probably a crushed clown buck and out of sight inflation?