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To: Kaslin
Trillions being added without end to our national credit card and prices (other than on gasoline) going up every week on almost everything else means "deflation" is hardly the big problem of those who work and must pay the bills.

Check out Russia today and see where we are headed tomorrow.

6 posted on 12/20/2014 12:30:37 PM PST by Gritty (Political Correctness is meant to humiliate you and force you to acquiesce in the lies-Mark Steyn)
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To: Gritty

The real inflation rate is reflected only partiially in the prices we pay. The price inflation has been running between 6 and 10+% since 08. The real inflation is much higher than that and probably in the lower end of the area we call hyper. Most of the extra money goes into the stock market. There is little return for lending it and much better returns from equities so long as the Fed keeps making the stuff and shoveling into the banks. A rise in interest rates, while necessary for any hope to avoid collapse is to be feared for its immediate effects. It will suddenly make loans more profitable than equities and the Market will go down, precipitously or more lazily but inexorably down as prices rise rapidly in the rest of the economy. All that money has to go somewhere. It will go into the prices of cars and potatoes. It will probably also crash property values which will itself serve to drive up the prices of everything else even more such the rise in the price of groceries will actually be steeper than the inflation.


19 posted on 12/20/2014 6:44:02 PM PST by arthurus
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