Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (59345)	5/14/1999 11:07:00 AM
From: Mike M2	Read Replies (1) \| Respond to of 132070

Chris, good points . There are no perfect analogies but it is worth noting that the two great bubbles of the century US 20's and Japan 80's ended in deflation. There was no outbreak of product price inflation. The paper wealth was locked in the bubble and much like a Ponzi scheme any attempt to liquidate hammers valuations- it's all about CONfidence. F.A. Hayek said ' the road to poverty is lined with paper wealth" This is what I anticipate for the US. When the US $ falls the US will experience inflation in the price of imported goods and I do expect interest rates to rise. I don't expect a global recovery I expect global recession/ depression. There is much excess debt and capacity to be liquidated. The US consumption binge fueled by debt and the wealth effect has done a good job of delaying global recession but it cannot stop it IMO. Simply put i expect the deflationary forces to overpower the inflationary forces. Mike