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To: Freedom_Is_Not_Free

I can’t exppain everything you ask in a short note. I’m swamped this week and into next week. I’m not ducking you question, I just know how much I had to read to understand these issues.

So please ping me late next week and I will get back to you on this.

There is some reading which is useful to spot commonality in debt deflations: Kindleberger’s “Manias, Panics and Crashes” is a good history of major financial blow-ups and some of the aftermath. While history never repeats exactly, it does rhyme quite a bit.

Next is to read Fisher’s paper on debt deflations! Available on the St. Louis Fed Reserve web site. Just google “Fisher deb deflation” and you’ll find it.

The google around for Hyman Minsky’s work on debt economies.

All of this stuff helps paint the background on debt deflations and what happens as a result.

The last thing I will point you to is the Fed’s “FRED” database of economic data. Google “federal reserve fred” and you get it pronto. Just start reading the charts and explanations of same. This will take you a week easily. But pay special attention to bank reserve information and credit formation data.

Last, consider this: When Japan’s melt down started, they were a creditor nation, with about 30% debt:GDP ratio. Now they’re at 230% debt:GDP. Interest rates are still rock-bottom low, they’re resorting to deliberately devaluing rhe yen to maonyain their exports and they’re going on 20 years of slow to no growth.
The common school of thought would have us believe that the level of spending by Japan’s government would have spurred inflation. Many economists STILL believe this, and they keep telling Japan and the BOJ to throw more money into a non-functional policy.


36 posted on 08/17/2010 9:53:04 AM PDT by NVDave
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To: NVDave

The reading list is the best reply you could give me at this point. Thank you.

On the flip side, what do you recommend to read about hyperinflations so I can read that after I finish the material you listed above? Or is that a waste of my time for now?

THANKS!!!!


37 posted on 08/17/2010 12:56:21 PM PDT by Freedom_Is_Not_Free (California Bankruptcy in 4... 3... 2...)
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To: NVDave

I can’t tell you how much I appreciate your help. This is the internet at its best. In the old days, I would not have access to people who could recommend where to start reading and I would be lost, thumbing through library index cards and shooting in the dark.

This is good. Thanks. Sometimes this Free Republic forum is the most indispensable clearing house of information, and networking site I have available to me. Times like this.


38 posted on 08/17/2010 1:04:53 PM PDT by Freedom_Is_Not_Free (California Bankruptcy in 4... 3... 2...)
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