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To: ThePythonicCow

I realize you can have inflation and deflation in the short term.

My question was , could this crisis end in both? Could we have both deflation and inflation after all the losses are taken and after the economy struggles to get started again or wouldn’t there be a clear outcome that either money expended or contracted?

I can see how we can have both in the short term. I can’t see how we can have both in the long term.

With Travis McGees suggestion, I can see how we could have deflation win, and then the government keeps printing so much for so long after deflation has won, they spur a new inflation. I can see that. But I can’t see inflation and deflation occurring simultaneously in different sectors after the crisis has run its course.

But then, I’m not very smart.


57 posted on 10/14/2008 2:48:16 PM PDT by Freedom_Is_Not_Free
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To: Freedom_Is_Not_Free
Perhaps you've already answered this ... if so could you briefly repeat your answer? These two words have become sufficiently overloaded with multiple meanings and implicit assumptions on our monetary system that they are becoming almost an impediment to useful discourse ;).
62 posted on 10/14/2008 3:25:50 PM PDT by ThePythonicCow
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To: Freedom_Is_Not_Free

>But then, I’m not very smart.<

I think you fit into the class as I do. You comprehend a little bit about the subject and know people who are experts in it which makes us feel somewhat ignorant.


69 posted on 10/14/2008 4:17:19 PM PDT by B4Ranch (I'd rather have a VP that can gut a Moose, than a President that wants to gut our Second Amendment!)
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