http://www.creditwritedowns.com/2009/05/us-inflation-where-and-when.html a finance news and opinion site Tue, 16 Mar 2010 22:15:03 +0000 hourly 1 http://www.creditwritedowns.com/2009/05/us-inflation-where-and-when.html#comment-8340 Vangel Sat, 02 May 2009 06:34:59 +0000 http://www.creditwritedowns.com/?p=8355#comment-8340 I wish the deflationists luck because they will need it. While it is true that some assets are overpriced and some goods are oversupplied it is a fact that the supply of money and credit is growing far faster than the supply of real goods that can be purchased. The bottom line is that in a fiat world where governments will do what they must to remain in power there is no incentive to permit deflation. We now have a massive federal deficit at a time when local and state governments are going bankrupt and public pension funds are going under. That means that we will see governments lean on the printing presses to bail out the reckless gamblers and the borrowers because they vote while America's foreign creditors do not. I wish the deflationists luck because they will need it. While it is true that some assets are overpriced and some goods are oversupplied it is a fact that the supply of money and credit is growing far faster than the supply of real goods that can be purchased. The bottom line is that in a fiat world where governments will do what they must to remain in power there is no incentive to permit deflation. We now have a massive federal deficit at a time when local and state governments are going bankrupt and public pension funds are going under. That means that we will see governments lean on the printing presses to bail out the reckless gamblers and the borrowers because they vote while America's foreign creditors do not.

]]> http://www.creditwritedowns.com/2009/05/us-inflation-where-and-when.html#comment-5001 Vangel Sat, 02 May 2009 02:34:59 +0000 http://www.creditwritedowns.com/?p=8355#comment-5001 I wish the deflationists luck because they will need it. While it is true that some assets are overpriced and some goods are oversupplied it is a fact that the supply of money and credit is growing far faster than the supply of real goods that can be purchased. The bottom line is that in a fiat world where governments will do what they must to remain in power there is no incentive to permit deflation. We now have a massive federal deficit at a time when local and state governments are going bankrupt and public pension funds are going under. That means that we will see governments lean on the printing presses to bail out the reckless gamblers and the borrowers because they vote while America's foreign creditors do not. I wish the deflationists luck because they will need it. While it is true that some assets are overpriced and some goods are oversupplied it is a fact that the supply of money and credit is growing far faster than the supply of real goods that can be purchased. The bottom line is that in a fiat world where governments will do what they must to remain in power there is no incentive to permit deflation. We now have a massive federal deficit at a time when local and state governments are going bankrupt and public pension funds are going under. That means that we will see governments lean on the printing presses to bail out the reckless gamblers and the borrowers because they vote while America's foreign creditors do not.

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