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Tenchu

03/08/09 12:18 AM

#77180 RE: Elmer Phud #77177

Elmer, > Just like it's always been just about to happen for 30 years.

This time it's different.

If inflation isn't a worry, then all of the debt burdening the system and all of the deficit spending going on won't have many negative consequences.

You're assuming that the same factors that kept inflation down over the past 30 years will stick around for the next 10.

Tenchu
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drjohn

03/08/09 6:50 AM

#77187 RE: Elmer Phud #77177

The problem with using gold as a currency or hedge against inflation is that it becomes a currency and acts like one. Eventually people who have gold will want to exchange it for, food, housing, stocks,bonds other currencies, if this happens en mass the price callapses. For almost 3 decades Cental banks dumped their gold reserves when they thought they didn't need them anymore.
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RobertG

03/08/09 10:34 AM

#77188 RE: Elmer Phud #77177

We haven't even gotten to the bad part of the financial crisis. We will look back at this time and consider it "the Good Ole Days."