-->The US is now the greatest debtor the world has ever seen. Nobody knows how much current debt plus liabilities the US is in for -- figures range anywhere from $44 trillion to $70 trillion. When you talk about this kind of debt and liabilities, I don't know if it matters. Both figures are impossible to service.

There are four ways of handling debt. You can renege on it. You can service it. You can refinance it. Or you can try to inflate it away, which is really another way of reneging on part of it.

There's no question in my mind but that the US government is thinking of inflating at least a portion of its debt away. In other words, inflation is an absolute necessity in view of the amount of debt the US has taken on. But what if the US (via the Fed) is not producing"enough inflation"? In that situation, deflation automatically takes over. Which brings me back to my original warning -- this nation is in a position where it must --"Inflate or Die." And when I say"die," of course I mean dreaded deflation.

The Fed is mortally afraid of deflation. Bernanke warned that inflation would not be tolerated in the US, and it would be fought, if necessary by helicopter dropping dollars from the sky. What he was saying, of course, was that the Fed would literally give money away before it accepted deflation. Japan set an example -- in its multi-year battle with deflation, interest rates in Japan were brought down to zero. Japanese banks literally gave money away in their desperate efforts to re-inflate.

Study the charts below. Each one is suggestive of"not enough inflation" or downright deflation. I didn't include oil, simply because I didn't want to crowd the site with too many charts.

Conclusion -- It may be that the Fed is not"inflating enough," at least that's what these chart suggests. If so, look for rising inflationary efforts by the Fed in the period ahead. The Fed cannot allow deflation or even dis-inflation.


Konsultieren Sie dazu folgende Charts per Freitag-Schluss 18.8.2006:

CRB-Index
Copper
GLD (Gold)
XHB (HJomebuilders)

Ein schönes Wochen-Ende wünscht

Emerald.

-->>The US is now the greatest debtor the world has ever seen. Nobody knows how much current debt plus liabilities the US is in for -- figures range anywhere from $44 trillion to $70 trillion.

Das erinnert mich an ein Zitat von Karl Ehlerding:

"Wenn man einer Bank 500.000 Euro schuldet, dann hat man ein Problem. Schuldet man einer Bank jedoch 500 Millionen Euro, dann hat die Bank ein Problem!"

-->>inflating at least a portion of its debt away

Wie soll das denn gehen? Blödsinn, sorry.
Inflationieren geht nur, wenn überhaupt - s. Japan, mit noch mehr Schulden. Mehr ist aber nicht weniger.


>Bernanke warned that inflation would not be tolerated in the US, and it would be fought, if necessary by helicopter dropping dollars from the sky.

Soso.......


@Emerald: Ohne Quelle sind jegliche Zitate Schall und Rauch.

-->>>inflating at least a portion of its debt away
>Wie soll das denn gehen? Blödsinn, sorry.
>Inflationieren geht nur, wenn überhaupt - s. Japan, mit noch mehr Schulden. Mehr ist aber nicht weniger.

Gemeint war sicher, dass der $ schneller im Wert fallen muss, als nominell die Schulden steigen

Der Schuss geht dann nach hinten los, wenn die Preise (und mit ihnen die Löhne) nicht analog zum Dollarverfall steigen. Dann öffnet sich die Ausgaben-Einnahmen-Schere weiter. Steuern erhöhen (Steuber:"pures Gift für die Wirtschaft") oder Ausgabensenkungen (ev. Lafontaine:"pures Gift für die Wirtschaft") tun auch nicht gut. Unsere schöne Papiergeldwelt steckt bis Oberkante Unterlippe im Dreck.

>
>>Bernanke warned that inflation would not be tolerated in the US, and it would be fought, if necessary by helicopter dropping dollars from the sky.
>Soso.......

Bei entsprechtender Rechtslage lässt sich so manches monetarisieren . Bin gespannt, was da noch kömmt...

>
>@Emerald: Ohne Quelle sind jegliche Zitate Schall und Rauch.

jo

Gruss