Sunday, Apr 04, 2010
It's all coming to a head
The Telegraph: Deflation on the prowl as Bernanke shuts down his printing press
The $1.7 trillion created out of nothing will vanish as the bonds are sold on the open market. Not too quickly, let us hope. Easy money must cushion the blow of spending cuts.
Posted by devo @ 09:18 PM (671 views) Add Comment
3 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. taffee said...
I've said time and time again that we are set for 10-15 years of deflation which is the only likely outcome ala japan model
the good news in japan is that if the kids want to buy a 1 bed flat then they can on about 1.6 x income...the population is now about the same as in 1950 so public services run beautifully and quality of life has improved as people no longer see buying things they don't need as a positive...pressure is off
2. dbc reed said...
Price inflation is rock bottom but governments have been printing their own money .So that's orthodox economics over and done with then.
3. fallingbuzzard said...
The old exit chestnut. The bonds that are never going to be sold back, the money thats never going to be sucked out of the economy, the debts that will be forgiven rather than repaid, and the inflation that will feel like deflation. Time to blame China.