Sunday, April 4, 2010

It’s all coming to a head

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 (1090 views)
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3 thoughts on “It’s all coming to a head

  • 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

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  • Price inflation is rock bottom but governments have been printing their own money .So that’s orthodox economics over and done with then.

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  • fallingbuzzard says:

    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.

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