Risk of Deflation is a good thing

[blazespinnaker]

"Bernanke May Find Deflation `Back on the Table' as Threat to U.S. Economy"

http://www.bloomberg.com/apps/news?p...hRI&refer=home

This title is wrong. The possibility of "Deflation" is not a threat.

In fact, it's a wonderful sign that there is room for massive easing on the part of the Fed.

Stagflation is a threat. ie, inflation alongside growing unemployment.

Deflation is not a threat. Everyone should frankly be very happy if that is what we are facing.

Unfortunately, I don't think it is. I think the fear is that a run on the dollar is more likely than that the dollar is going to strengthen.

[D-Mack]

Re: Risk of Deflation is a good thing

Listening to Hudson last week, I think I remember he mentioned the D word. ( But it has been a while since I listened to it)

Not much info there, but he sees nobody on the scene to replace the dollar.

Intention is lowering living standards in th US by 20% and 10 million foreclosures estimated by gov is optimistic, probably more like 15 million foreclosures

http://216.240.133.177/archives32/Ch...008_110000.mp3