Can you say "D" as in depression on CNBC?

[LargoWinch]

Bailouts Will Push US into Depression: Manager

The end result of the global economic slowdown may be the U.S. announcing
national bankruptcy as the government cannot afford the bailouts that it
promised and the market will not bail out the government, Martin Hennecke,
senior manager of private clients at Tyche, told CNBC on Thursday.

[Charles Mackay]

Re: Can you say "D" as in depression on CNBC?

I'm glad the comment button is back on vids..

EJ and others on this forum have noted the cross currents of deflation and inflation happening simultaneously so the name of the game is to know which is which and when.

I thought this Larry Edelson Q&A was a good one.

Q: What is your view on deflation? Many say we’re headed for a deflationary collapse like we experienced during the Great Depression. What do you think?

A: I do not agree with that view. Chief reason: The world is no longer on a gold standard. And central bankers are free to print money whenever they want.

I do believe, however, that in the absence of a gold standard, deflation and inflation co-exist at the same time. For instance …

We are currently witnessing deflation in real estate prices …

We have, and will continue to experience, deflation in the value of the dollar — its price is falling, and it buys less and less …

We are experiencing deflation in the cost of money — the price to borrow money, interest rates, is falling, and …

We are experiencing deflation in other paper assets — for instance, the Dow Jones Industrials, which has lost nearly 72% of its purchasing power in the last seven years.

Simultaneously …

We are experiencing inflation in tangible assets …

Inflation in the supply of money, and …

Inflation in natural resources.

So the big question is not whether the world is heading toward deflation or inflation, but rather — which sectors will inflate, and which will deflate in the years ahead?

For many of the reasons I already mentioned in the gold, oil and natural resource questions above — I believe that deflation in the value of our money (its price and purchasing power are falling) … and inflation in the value of hard assets — will continue for several more years.

I also believe that at some point, real estate and even broad stock markets will join in and re-inflate, rising simultaneously with the bull markets in commodities and natural resources.

How is that possible?

I call it the “Great Re-Inflation.” And it will occur in the final phase of the crisis we’re experiencing, when all currencies begin battling each other with “beggar thy neighbor” trade and economic wars, with one currency vying against another to be the cheapest currency on the market.

At that point, which is a few years away, you will see virtually everything inflate, except paper currencies, which will be losing massive amounts of purchasing power.

[GRG55]

Re: Can you say "D" as in depression on CNBC?

...I also believe that at some point, real estate and even broad stock markets will join in and re-inflate, rising simultaneously with the bull markets in commodities and natural resources.

How is that possible?

I call it the “Great Re-Inflation.” And it will occur in the final phase of the crisis we’re experiencing, when all currencies begin battling each other with “beggar thy neighbor” trade and economic wars, with one currency vying against another to be the cheapest currency on the market.

At that point, which is a few years away, you will see virtually everything inflate, except paper currencies, which will be losing massive amounts of purchasing power.

Looks like we are in the early stages of that competitive currency depreciation policy broadening out beyond the mercantile economies of Asia.