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To: yoe
“We’re on the edge of deflation. “

Can someone tell me how you can have deflation with fiat money?

15 posted on 11/23/2008 8:54:42 AM PST by HuntsvilleTxVeteran (Obama, Change America will die for.)
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To: HuntsvilleTxVeteran
Can someone tell me how you can have deflation with fiat money?

B/c the amount of money created out of thin air by Wall St schemes over the last 10-20yrs dwarfs the amount of money being injected by the Fed.

The de-leveraging, declining values of homes/market/bonds, etc. has decimated trillions & trillions of leveraged capital.

Keep in mind, we have fiat money compounded with fractional reserve banking, excessive gov't/corp. debt, consumer credit, deficit spending, leverage/margin, & every other ponzi-scheme known to mankind unraveling.

36 posted on 11/24/2008 4:09:17 AM PST by babbabooey
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