Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: dennisw

If we have deflation, it will not be for long. Our present political class will spend their way out of shortages, and that will certainly lead to hyperinflation after a year or two.


103 posted on 02/23/2009 6:04:03 AM PST by Travis McGee (www.EnemiesForeignAndDomestic.com)
[ Post Reply | Private Reply | To 99 | View Replies ]


To: Travis McGee
If we have deflation, it will not be for long. Our present political class will spend their way out of shortages, and that will certainly lead to hyperinflation after a year or two.

Yes it is possible but my case for 3-5 years of deflation is that hyper inflation for the world's premier reserve currency, the US Dollar. is less likely than hyper inflation on the periphery like blogger Fardel's Argentina

Hilary is kow-towing to China right now. She is making promises to them the the US Treasuries they buy will not be wiped out by inflation. The Chinese and others will remember if they are betrayed on such promises and will render judgment on the USD via the markets
This will force us to abide by no hyper inflation policies even if we stray and start to cheat

I predict 3-5 years of stable prices or deflation accompanied by low economic activity..... We just had our inflationary blow off with all commodities crashing. This went on since September 2001. You have to give time for the pendulum time to swing to the other side (deflation) before another inflation is feasiable

"The Reckoning" also says the crash (we are in right now) will be a  deflationary one due to the markets rendering instant judgment on the USD if we try hyper inflation

FWIW a deflationary depression preserves social coherence better than an inflationary depression

107 posted on 02/23/2009 6:44:36 AM PST by dennisw (Archimedes--- Give me a place to stand, and I will move the Earth)
[ Post Reply | Private Reply | To 103 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson