Replies to post #106440 on Biotech Values

[jbog]

Blade,

There seems to be a lot of confusion as to the end results when we talk about Inflation, Deflation and Devaluing.

Inflation and Devaluing have the same end effect, they eventually decrease the buying power of our currency. There's absolutely no difference. Deflation should be used in regards to our current assets.

Your assumption regarding helping repair people's balance sheet is correct, but with the exception of your mortgage, what other debt do people have that low interest rates help? Their credit cards will still be in the 20 percent range.

So in the long run, you're holding interest rates down to benefit a homeowner while at the same time you're shackling millions and millions of people to accept zero income on their investments. Maybe after trying to help the homeowner for years with no success it's time to try something different.

As far as devaluing our currency goes, it'll help for one inventory cycle like usual.