Single Post Display - MarketTicker Forums


	Detailed market commentary at The Market Ticker and Ticker Classics (The Year 2011 In Review) Donations accepted; we offer GOLD ACCESS for enhanced privileges. T-Shirts, caps, coffee mugs? Click here. BlogTalkRadio - Mondays at 3:30 Central - Yes, TickerGuy has a radio show (kinda) RSS available

MarketTicker Forums Single Post Display (Show in context)

User: Not logged on

User Info	Pillars of deflationists' arguments disputed; entered at 2007-12-02 20:08:15
Nothing Posts: 4382 Registered: 2007-09-13 Russian River Appellation	Rm Historically, the increase in .gov bailout, military and entitlement spending, to compensate for liquidity deflation, at this point in the "inflation-deflation" cycle, has resulted in increased demand and competition for a contracting credit supply. This increased demand has driven interest rates on private sector and .gov debt to very high levels. Eventually the private sector is starved for credit and commerce collapses. The increased .gov deficit spending is brought to a halt when tax cash flow from the private sector reverses. The liquidity contraction spiral then resumes, interest rates fall, and both the private sector and .gov fall into economic depression. Last modified: 2007-12-02 20:15:09 by nothing 2007-12-02 20:08:15