Re: Is deflation or inflation next? Opine, please.



--
Phil Scott
Ideas are bullet proof.
<royls@xxxxxxxxx> wrote in message
news:447b0199.12067229@xxxxxxxxxxxxxxxxxxxxxxxx
On 28 May 2006 10:07:49 -0700, taxationistheft2003@xxxxxxxxx
wrote:

Will the world see deflation or inflation? I think because
of the high
levels of debt, we will see deflation, once the housing
bubble pops.

I would also bet on deflation, the only question is when.
Other
countries, especially China, won't be stupid enough to
accept US
toilet paper in return for real goods and services
indefinitely. When
the huge overhang of US government debt held by other
countries starts
being repatriated, real US interest rates will rise, and
credit money
creation will be choked off. Debt repayments and mortgage
defaults
will then sharply contract the money supply. This is a
fatal flaw in
the credit money system: you can't force people to borrow
when you
need to increase the money supply to prevent deflation.
Before the
end of the year is quite possible, IMO, but it could also
wait a
couple of years yet. China is the key. It does not want
anything to
happen before the 2008 Olympics, so might wait until they
are over
before pulling the plug, content to let the imbalance grow
even more
dangerous in the meantime. So fall 2008 is effectively the
expiry
date on the current world financial system (it is also the
time of a
very important US election, which China might want to
influence by
triggering a US financial crisis). You read it here first.

Not a bad analysis.



Would the more learned among you please post your opinion?
I think
this is the most important question in the world today.

Yes, it's very important; but it is only an indirect side
effect of
the real issue, which is land.

Land is an issue. But it is corrupt and bloated government
sucking the blood from the nation making it appear as taxation
is the prime issue.

taxation however is a secondary issue to its cause...80% or
more govt bloat...and insider fraud into the trillions.

Phil Scott


-- Roy L


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