GliderGuider
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Sun Nov-16-08 11:23 AM
Response to Original message |
3. That's why we're looking at a deflationary collapse rather than inflation. |
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Edited on Sun Nov-16-08 11:23 AM by GliderGuider
Credit = Debt = Money.
When the credit supply collapses, it's exactly the same as pulling money out of the economy. That's the very definition of deflation. Printing presses run much slower than electrons, so there is no chance that the hole created by the electronic evaporation of huge amounts of credit can be plugged with cash, no matter how hard the central banks might try.
The entire world is on the brink of a deflationary depression.
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