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To: BfloGuy
"Gold is still the best bet until the Fed announces a serious increase in interest rates (i.e., higher than inflation.) That doesn’t appear likely anytime soon. "

IMO, the government is trapped. If the interest rates rise, their payment on our huge debt may become unpayable.

If they quit printing money and running a huge defecits, we go into a deflationary spiral.

If the economy starts growing, businesses will begin to compete with the government for loans which will drive up interest rates and create serious inflation.

5 posted on 02/29/2012 10:23:12 AM PST by blam
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To: blam
If they quit printing money and running a huge defecits, we go into a deflationary spiral.

That is what they think. It's a keystone of Keynesianism.

And I agree that they are in a trap -- of their own making, of course. I don't see how we get out of this without a pretty horrible collapse. They're just trying to stave off the inevitable, I fear.

6 posted on 02/29/2012 2:25:40 PM PST by BfloGuy (The final outcome of the credit expansion is general impoverishment.)
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