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NewMoney

03/05/09 2:11 PM

#187972 RE: bird_splitter #187971

Well, I'm not as well of as some here so I only use bills
under $20 for that.
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SilverSurfer

03/05/09 2:14 PM

#187973 RE: bird_splitter #187971

Hyper-Inflation may not happen.
The government may default on loans, in the very distant future, but the TARP, Bail out, and liquidity money may have no effect. To date the Fed is borrowing, not printing. And the money it is borrowing is being thrown into a funeral pyre. If it does not go with velocity into circulation, there will be no inflation.

Even if they have to print to buy the T-Bill debt issues it may not inflationary. We have been in massive inflation for the past several decades so massive deflation may be a correction that we will have to deal with for a long period of time.

The "paradox of thrift" effect is here to stay and you cannot get money through the economy with that mindset in place. If you offer loans, they will not take them, if you give away money, they will save it...you will not get the consumer or business to spend, like the past 20 years, for a long, long time. hge