tag:blogger.com,1999:blog-18675105.post3180248741888492015..comments2023-12-30T10:06:37.450+00:00Comments on HousingPANIC - The Housing Bubble Blog with an Attitude Problem, 2005 - 2008: Bernanke from 2002: "Deflation: Making Sure "It" Doesn't Happen Here"bloggerhttp://www.blogger.com/profile/06585266242070350399noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-18675105.post-29086443866811940162008-02-02T10:52:00.000+00:002008-02-02T10:52:00.000+00:00This is how it worked out for Japan... http://en.w...This is how it worked out for Japan... <BR/><BR/>http://en.wikipedia.org/wiki/List_of_countries_by_public_debt<BR/><BR/><BR/>They're 2nd in the world with debt/gdp, right behind Lebanon. And still they are in deflation, over 10 years counting.<BR/><BR/>We are so unbelievably f u c k e d, it's not funny, deflation here we come, money supply is already shrinking at an extraordinary rate. The problem is re-inflating it, who do you give the money to, how do you distribute it equally. These are all questions Ben is pondering right now, he probably can't sleep at night.<BR/><BR/>Good luck.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-56406617405973194802008-01-31T14:24:00.000+00:002008-01-31T14:24:00.000+00:00"a determined government can always generate highe..."a determined government can always generate higher spending and hence positive inflation"<BR/><BR/>How did that work out for Japan? Even with the decades of deficit fiscal spending...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-88035179346471447212008-01-31T14:01:00.000+00:002008-01-31T14:01:00.000+00:00"Like gold, U.S. dollars have value only to the ex..."Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press."<BR/><BR/>ummm, even gold can lose value if "competing currencies" are allowed; i.e. if people don't have gold-- and it's too exepensive, they could simply barter, etc...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-41682853580378349582008-01-31T12:42:00.000+00:002008-01-31T12:42:00.000+00:00I also live in Europe at least for two more months...I also live in Europe at least for two more months and the dollar is so weak, you can't buy anything. There is simply so little value in Europe. While I love Europe it is so inconvenient and so backwards in so many ways that in reality one should get 3-4 Euros to 1 dollar if there were any justice based on quality of life. <BR/><BR/>But the Fed is powerless to create another bubble. It ain't going to happen. Americans are tapped out, what are they going to buy with their money or someone else's money if they are tapped out. The answer is nothing. We are going into an economic downturn, probably a harsh one and it will ultimately flush out the system, so we can reboot and get on with our lives. <BR/><BR/>I see deflation as the coming reality. Wal Mart just announced lower food prices. Profit margins are going to shrink across the board as businesses everywhere slowly cut prices to sell enough to keep their doors open. Many will fail and yet the buyers will not materialize as there will be so many used items for sale like cars, boats, motorcycles, appliances, furniture that stores won't be able to compete until they slash prices to the bone. This is just the way it is. I see no alternative.<BR/>Good luck!!!Anonymousnoreply@blogger.com