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Strategies & Market Trends : Currents of Currency -- Ignore unavailable to you. Want to Upgrade?


To: The Wharf who wrote (129)1/27/2012 3:02:09 PM
From: The Wharf  Read Replies (1) | Respond to of 594
 
The pace of recovery remains sluggish by historical standards and is likely to slow somewhat in early 2012,” Dudley said. “Thus, unemployment, both nationally and locally, is likely to remain unacceptably high for some time. Also, inflation is likely to be below our objective for several years.”

The problem all debt needs increased profits to pay the loan off. Increased profits come from more sales of product or decrease of cost that can off set slowing sales. Projection with an objective.

There is a problem here for most nations do need national inflation to reduce debt base

When the currency of a nation decreases in asset tied value you have a double sort of whammy inflation remains in the paper obligation but there is a decreased value in the asset that currency is supposed to represent. Aside from free market assessed value surplus currency can create a fictitious value. The inflated value of the paper obligation is a fixed debt. However if debt is way to high and value totally erroneous it is impossible to solve anything as inflation you do need but in an era of cost savings you can end up with a depression. .