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To: Canuck Dave who wrote (207658)12/13/2011 4:09:32 PM
From: Veteran98  Respond to of 313057
 
Well I guess we waited 20 years for Japan to crap out and it didn't happen t but this is on a bigger scale ....I sure as hell don't know what's going to happen and regardless of what Ludwig factored I still think that's in that's where we are heading. I just can't see it happening right now and even though at the end of the day although austerity is the answer I just do not believe that in any way that the political will is there. I bet at some point Europe prints prints prints......



To: Canuck Dave who wrote (207658)12/13/2011 5:50:36 PM
From: Veteran98  Respond to of 313057
 
I'm pretty sure I was replying to a reference to Japan which I don't see in your post anymore ?? In any event interesting comments here as well from a promotional site but which quite often hits the nail on the head...

Darkness Without a Dawn...

equitymaster.com

But things could happen faster...and worser. Japan financed its own deficits with its own money. Now, everybody is running deficits. And the amounts to be refinanced are staggering. Bond buyers may balk...or simply be unable to swallow so much debt.

Which will cause the central banks to come into the picture - with coordinated money-printing. Instead of going down, bond yields and consumer prices could go up.

Think things are bad now? Wait until the economy has to deal with a Great Correction and inflation.