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To: sickoflibs
The only way out of deflation is to create inflation.

The only way to create inflation is to create a war.

Printing money has no effect on deflation. That money must be borrowed, and with high debt nobody can do so.

Those without money can't afford to borrow.

Those with money have no desire to borrow and buy assets that may fall in price.

It's called a liquidity trap because the money being printed by the Fed is TRAPPED.

17 posted on 01/09/2009 2:32:35 AM PST by Vet_6780 ("I see debt people")
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To: Vet_6780
Democrats are waging the war on the economy basiciscally repeating GWB borrowed-printed-stimulus packages but on an ever increasing scale. Instead of bombs and roads in Iraq it will be parks and art galley's here. All debt.

The booms and busts are just crack cocaine highs and crashes and the addict (Washington-MSM-stockbrokers-americans) are putting the crack rocks on their kids credit cards because "we have to". None of these even republicans ideas fix anything. It's all “we have to” like the parents on A+E Intervention buying their kids more crack, to keep them out of jail for stealing, “we have to”

24 posted on 01/09/2009 7:51:15 AM PST by sickoflibs (GWB : "Give me a 700B blank check to save the UAW until Obama takes office")
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