Comments on: Inflation or Deflation? http://wallstreetpit.com/12351-inflation-or-deflation Tue, 16 Mar 2010 05:54:16 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: John Ryskamp http://wallstreetpit.com/12351-inflation-or-deflation#comment-82412 John Ryskamp Mon, 23 Nov 2009 18:54:19 +0000 http://wallstreetpit.com/?p=12351#comment-82412 Unfortunately for your analysis, the government is liquidating, which means demand collapses. Government is the party to 50% of transactions in the U.S.--it is the glue which keeps the economy together. The liquidation by government of its position in the society, means that deflation, not steady prices at any level. The best measure of demand collapse is supply chain deterioration, which is now occurring. Watch for it happening in agriculture. The so-called "stimulus" is simply looting, which is exactly what Mellon was talking about when he advised Hoover; Roosevelt continued this looting. The "stimulus" is the rich dragging every last nickel it can out of the society before circling the wagons. This is why there will be another stimulus bill, probably about $2.5 trillion, probably around February 2010. There is still a lot of wealth in the U.S. for the rich to steal. They will steal it ALL. Unfortunately for your analysis, the government is liquidating, which means demand collapses. Government is the party to 50% of transactions in the U.S.–it is the glue which keeps the economy together. The liquidation by government of its position in the society, means that deflation, not steady prices at any level. The best measure of demand collapse is supply chain deterioration, which is now occurring. Watch for it happening in agriculture.

The so-called “stimulus” is simply looting, which is exactly what Mellon was talking about when he advised Hoover; Roosevelt continued this looting. The “stimulus” is the rich dragging every last nickel it can out of the society before circling the wagons. This is why there will be another stimulus bill, probably about $2.5 trillion, probably around February 2010. There is still a lot of wealth in the U.S. for the rich to steal.

They will steal it ALL.

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