Mark in SF

Reconsidering the Deflation Risk

<i>In an economy in which 2/3 of GDP depends on “buy now,” the Fed will do everything in its power to prevent this from happening.</i>

Yeah, but the fed does not have much power to prevent the inevitable. Remember pushing on a string? That takes a long long time to work, and it's not working at all right now. But they time it does a deflationary mindset will have set in pretty well. The only thing the fed can do to inflate over this debt mess is start actully printing lots of money (none of this swap/repo stuff), and flirt with the death of the USD. Not going to happen IMO.