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To: pfony1
then can you explain how INCREASING the price (i.e.: the interest rate) of that “massive debt” will NOT increase inflation?

Always and everywhere, the popping of a debt bubble will result in deflation. You are swimming upstream against a massive current of real-world experience.

36 posted on 07/25/2018 11:50:13 AM PDT by PGR88
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To: PGR88

Hmmm...

“Real World Experience”...

One ounce of gold cost $1,837.68 on 7/24/2011 and
One ounce of gold cost $1,222.00 on 7/24/2018.
What was the “real world” inflation rate for gold for that 7-year period? Feel free to use a calculator.

The inflation rate for 2011 was 3.0% and
The inflation rate for 2018 was 1.9%.
Do you think that that “real world” change represents an INCREASE?

I agree with you that America’s deficits and debt obligations are too big and should be reduced.

However, I do NOT agree that we should immediately “freak out” about those bloated deficits and debts. A FED-caused recession (like all “real world” recessions) will DECREASE tax revenues and will INCREASE “transfer payments”. The “real world” result: MORE deficits and MORE debt!


37 posted on 07/25/2018 2:53:11 PM PDT by pfony1
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