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Bugle wrote:
Well I do feel some what deceived.
I really enjoy your posts and forum.
Carl on GIM is not nearly as diplomatic so I was a somewhat suspicious.
With the Dubai default and the resulting further credit contraction I am more than ever convinced that we are going straight into severe deflation. There would be no debate from Carl.
How about you ?
I have believed for a long time that when the borrowers cease to meet even the low standards the lenders set for them, or the borrowers simply refuse to borrow any more, the only result can be deflation.
As the albeit diminishing numbers of borrowers continue to pay the lenders, that money leaves circulation and is not replaced by increasing numbers of borrowers due to the concept in the first paragraph.
Having said that, I think certain "commodities" will become more and more difficult to find and the law of supply and demand will at least make it appear there is "inflation" for these items.
The result:
Gold, silver, milk, cheese, eggs, bread, butter, gasoline, diesel, propane, natural gas, medical care, etc. all becoming more expensive.
RV's, boats, snowmobiles, ATV's, golf clubs, televisions, used cars (especially gas guzzlers), airplanes, real estate, and rolex watches all becoming less expensive.
In dollar terms in both cases.
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