Monday, August 23, 2010

DEFLATION vs INFLATION DEBATE

from Karl Denninger site "you can't have inflation without rising wages....." in other words how can you sustain rising prices, inflation w/o having people able to afford to pay for them?


We have collapsing values, the one most people watch is the stock market and THEY are doing all they can to keep IT from collapsing.

Home values have collapsed, not re-inflated, Bond yields have collapsed and show no signs of inflation.

WE have excess capacity.

Where many are looking, FIAT created, is not causing inflation (as yet) because it sits as excess reserves. REAL money gets into system when a loan is made…..banks not doing much of that

My 2 cents

Duratek

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