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To: RC one
Businesses won’t rehire if there’s not enough demand for their goods and services.

that is basically the definition of a deflationary spiral. In response, they will create more money and throw it at the wrong people and the taxpayers will foot the bill. again. My opinion, gold is probably not overpriced.

Oh, I think I see what you're saying. So, I don't have enough money or confidence to buy anything more than the bare minimum I need to keep going. Moreover, some debts have gone sour because I MUST get some money in the bank for emergencies. This creates the deflationary pressure. The government then prints a bunch of money and gives it to the unions, Wall Street bankers, and State Governments. This is inflationary. But *I* still don't have any money, and now my taxes and fees are pushing up. This is how we get stagflation - or something new. Inflation and deflation at the same time.

22 posted on 06/04/2010 9:59:25 AM PDT by ichabod1 (Meh, soccer. ItÂ’s just commie kickball.)
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To: ichabod1

that’s basically it. as I see it anyways. There are deflationary forces intrinsic to the free market that will not be reversed by increases in the monetary supply, especially not the way they’re injecting the money into the system. This “bailout” was a robbery, not a bailout and now they’re going to try to do it again. BOHICA


34 posted on 06/04/2010 12:27:34 PM PDT by RC one (WHAT!!!!)
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