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To: TruthConquers
...deflation kept cash valuable...

Not sure if you missed the point by accident or on purpose.   I'm hoping it was the former so I'll try again.

Deflation does not keep cash "valuable", deflation increases cash's value.  It means people lose their homes because the mortgages they planned to pay with a fourth of their wages now consume half. 

61 posted on 03/15/2011 6:16:46 PM PDT by expat_panama
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To: expat_panama

OK.

But today’s money isn’t increasing in value.

In fact the Treasury wants to change the coinage, and the most likely is to make more of our money out of base metals, certainly not copper or nickel. Even cotton is up over 150% since 2010. It is like the Romans, when they couldn’t keep up with all the territory that they had conquered.

Yes, people lost their homes, mortgages were too high, but savings increased in their buying power. Deflation is bad, but mostly because the central banks can’t grow the money supply as easily as during inflation.

It would be better if people knew HOW MUCH things will cost OVER their lifetime. The cost of college goes up FASTER than the so called inflation rate. Who can save for something when the costs are UNKNOWABLE?

How many more homes will be lost with the coming resets?
How many pensions are UNPAYABLE? How many people can be out of work and still have more than 50% of people working for the government, state, local and federal? How much more will the money supply can be blown before it blows up? All credit bubbles blow up, historically.

It will be only a matter of time.


62 posted on 03/15/2011 7:29:03 PM PDT by TruthConquers ( Delendae sunt publicae scholae)
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