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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (62)	3/10/2017 8:05:32 PM
From: THE ANT	Read Replies (1) \| Respond to of 13803

Agreed if the money is spent in a wise manner. We hear about countries reaching a certain debt to GDP level and then tanking. True if they don't hold the reserve currency, How do we know that is true for the country with the reserve currency? I say it is not. The US could print without creating debt--just write the check. For 60 years at a time one can not do this without creating massive inflation. What people fail to see is that when debt in the world gets to a certain level the rules of the past 60 years no longer work. It is time for a debt jubilee Our productive capacity (actually the worlds) has outstripped the ability of our system to create money to buy all the stuff. We could have a deflationary recession and wipe out productive capacity in a downwards spiraling manner until debt is wiped out like In the 30's The other option is for the country with the reserve currency to print us out of our debt (we will know when there is clear inflation and NEVER before that) That will require Trump to maintain free trade so as to allow more money printing prior to inflation appearing. We can print the world not just the US out of their debt. Of interest is that assets values will lag money supply while wages should at least keep up as eventually interest rates will rise. I say do it now. The moment we create true inflation we can stop. The risk are much less with this approach than raising rates prior to inflation to head it off. These rate rises will crash assets and show us that deflation is the real enemy. Steve Bannon said of massive infrastructure spending "We will throw it at the wall to see if it sticks" I hope he meant it. It will stick!