yo!...
love it or leave it...innit!
DEFLATION NATIONgettin a grip on it
...here in
deflationville we like our costs fallin...
...but...
...we also like our stash risin...
OUR PHILOSOPHY
...information is not knowledge...
...knowledge is not wisdom...
wisdomis
knowledge and
experienceover time
------------------------
IT'S THE DEBT STUPID
The plight facing Britain and America is uncannily similar to the 1930s, since prices of many assets —from shares, cars, to house prices...
...are falling at record rates...
...but the value of the debt against which they are held...
...remains unchanged....
This “debt deflation” is among the most painful of all economic phenomena...
...since it means the amount families owe increases each year...
...even if they borrow no more...
---------------------
MISH
..."There is no money to pay back loans.
What cannot be paid back will be defaulted on...
and the default avalanche has been triggered...
...Once an avalanche starts, it is impossible to stop.
That avalanche of defaults amounts to deflation if it exceeds the
expansion of money supply.Banks are attempting to hide the avalanche by not marking their books to market.
Citigroup alone is sitting on over $800 billion in SIVs of dubious value.
However
pretending credit will be paid back does not make it so...
...just as ignoring an avalanche does not stop it..."mish
petey :
...here in
deflationville we take our solvency seriously...