Re: Deflation

-------- Original Message --------

Subject:	Any Attempt by the US to "Inflate Away Its Debt" Would Lead to Global Financial Collapse -- Re: Deflation
Date:	Mon, 22 Mar 2010 07:04:23 -0700
From:	Jas Jain

Sabri: "…these days it is very difficult to decide what to believe and what not to believe. The only thing I know for sure, however, is the following:

"If the U.S. Treasury goes down, it will take the rest of the world with it under the current conditions. Until the conditions change, the U.S. Treasury, and hence the U.S. dollar, is safe: It would be a collective suicide at the moment if the rest of the world does not allow the U.S. Treasury to roll its debt over. As a saying goes, the US Treasury has grabbed the rest of the world by the balls. The rest of the world needs to find a solution to this so that we do not lose our balls and we do not know what that solution is yet!"

 

Not what to believe but whom to believe. Inflation dopes, obviously, believe propagandists Faber, Rogers and Schiff. These three are proven morons because they comment on subjects that have no understanding of whatsoever. (Rogers called the top in sugar last December by an idiotic argument that affluence in Asia would lead to higher consumption and prices for sugar; this moron doesn't even know that the prices are determined by both demand and supply. Furthermore, how long has increased affluence going on in the world?).

 

Actually inflating away its debt, or "Printing Money," by the USG simply cannot happen because the attempt alone would lead to a far bigger crisis than what the world economy faced in 2008. The all-powerful Bond Market would force America into an austerity program! Can you spell Deflationary Depression? BTW, CPI is 1.47% lower than 19 months ago and is at the same level as 21 months ago! Remember the quote from Clinton in the book by Woodward that the [US Treasury] Bond Market was more powerful than the President. Rubin taught Clinton that if Clinton wants prosperity during his reign and wants to get re-elected he must keep the Bond Market happy, i.e., policies that would bring the long-term UST rates lower. The rest, as they say, is history. The worst thing that Obama, Bernanke and their successors can do is to offend the Bond Market. That would be game, set and match to the bears. Bulls are trapped and the best that they can hope for is to keep the game going a bit longer. Like all games this game would end and it cannot end in a tie. Inflation dopes, naturally victimized by propaganda, listen to, or believe, the wrong people. Bernanke "Printed Money" and…

Jas