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To: Uncle Lonny

All the smart money was in deflation, and is still in deflation. Why do you think Bernanke panicked back in 2009? It was because prices were going down not up, to reflect lowered demand, and that was going to crush Bernanke’s debt positions.


10 posted on 05/14/2012 3:01:44 AM PDT by JCBreckenridge
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To: JCBreckenridge; LS; Lazamataz

You get inflation from the destruction of the means of production/service of an economy.

Why did Zimbabwe get hyperinflation? They took over their farms and gave the farms to non-farmers.

OK, why do you get deflation? In a credit-based economy, you get deflation when credit availability is destroyed.

Thus, if printing more cash destroys more credit availability, then you get deflation.

Deflation is an economic reaction to a slowing speed of money. Lower prices encourage spending sooner.

On Sale Now, Sale Ends in 24 hours!


16 posted on 05/14/2012 3:31:37 AM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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