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User Info Why we will experience deflation; entered at 2007-12-02 16:44:38
Talimuzer
Posts: 39
Registered: 2007-10-14 Oregon
Forgive my ignorance in this area but aren't many of these back office deals such as the Super SIV fund, the restructuring of ARM's etc, a back door way of supporting an inflationary environment? Certainly, the potential to stall a deflationary scenerio, point to the more likely outcome of 1st an inflation and then perhaps a deflationary environment later as Jim Puplava believes.

I suspect that the FED is actually funneling billions into the the stock market by way of the PPT and other back door tricks to prop up the markets come hell or high water. Perhaps the EU is doing the same thing. And then there are the soveriegn funds. These national funds will pursue an inflationary outcome to the bitter end.

My point is that deflation may be perhaps less likely than KD and others believe at least in the next few years. Could it be that the deflationists are under-estimating the power of big economies to pump enough liquidity into the system to hold deflation at bay?

That seems to be pivotal issue of the argument.



2007-12-02 16:44:38