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To: Orange1998

In a liquidity crisis it’s the exact right response to avoid deflation.


47 posted on 06/02/2012 8:19:55 AM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: Wyatt's Torch

Trouble is, the liquidity is flowing into those few commodities with reliable demand and the rest is deflating anyway. Adding pain to misfortune, salt on the wound, insult to injury is how it appears from this vantage point.

I suppose an argument could be made that price uncertainty and supply constraint due to price in certain areas prevents the full blown onset of a deflationary mindset.

But food? That’s just evil.


49 posted on 06/02/2012 8:28:23 AM PDT by RegulatorCountry
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