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To: I want the USA back
It’s good because it retains and possibly increases the value of savings and property

Yes and no. Your liquid savings will increase in purchasing power, but your property will lose value, able to command progressively fewer of those dollars. Then the danger is that everyone will simultaneously move their assets to cash, further depressing the prices of investments. Look at Russia a few weeks ago when the currency was in free fall and people were rushing out to buy things ahead of price rises. Now imagine the opposite, with everyone trying to sell everything.

19 posted on 01/06/2015 1:26:27 PM PST by Bubba Ho-Tep ("The rat always knows when he's in with weasels"-- Tom Waits)
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To: Bubba Ho-Tep

Under what circumstances can everyone move their assets to cash during a deflation? Free market trades happen because each party feels it will be better off. There has never in the history of the world been a perpetual deflation without government intervention. Prices, high and low, correct themselves in a free market.


31 posted on 01/06/2015 7:57:14 PM PST by 1010RD (First, Do No Harm)
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