peterthepainter

Inflation Is in Our Future...Not Deflation

fear is the key...and the fear is of deflation...
the people suffering from this fear are usually suffering from fear of inflation...
they have changed their minds and are sh*t scared...
they are only opening the liquidity taps because of their great fear of debt deflation and its disasterous consequences...
when they cease to fear deflation they will turn off the taps...

unfortunately for those who are less than solvent...the banks will not lend
...those that are solvent do not wish to borrow at this time...

the prices of goods that require credit is falling fast...
the atm of home equity is history...
the liquidity being created is locked in the banks...
only the truth about balance sheats will change that situation...

we are in a bear market that started in january 2000 and the 2003-2008
rally was fuelled by real estate bubbles and equity release...
this is now over for the foreseeable future...

the next period will be about retrenchment...unemplo... falling demand and falling prices...

the banks are bust...the automakers are bust...many retail chains will fail
the consumer is being bitten and will remain shy...

if it takes this amount of liquidity to get things going...how will they keep going when it is turned off...

alla kings horses an alla kings men cannot get this humpty dumpty together again...