Subject: Re: [Homestead] Dow could close below 8000
Date: Fri, 10 Oct 2008 15:58:35 -0400
> > >Inflation is a constant, minimal at times but crazy at
> > others.
>
> Not always. Recessions sometimes produce periods of deflation. This one
> won't. The bailout, loans, interest rate cuts, etc. are seeing to that.
Yes, deflation can and has happened but over the longer term inflation is a
constant.
The way they are fighting the current problems could very well lead to hyper
inflation. They are dumping a lot of cash on the system and running up huge
debts. The way every government in history has paid its bills is via
inflation. With the bills we have run up and the cash thrown about the next
round of inflation could be a dozy.