carlspackler

Why the Fed Can't Prevent a Deflationary Depression

I think I understand what you're saying but could you explain it a bit more?
If the debt was denominated in $'s backed by gold & then the debts were settled w/$'s how did that devalue the $'s? You may think I'm disagreeing w/you. I'm not. I just don't understand. Did they print more $'s? Help me understand Obi Wan! Thanks


On Feb 05 07:30 PM dieuwer wrote:

> Debt denominated in dollar can be paid off by printing dollars. Therefore,
> deflation will never last under a fiat-money regime.
> When comparing the current situation with that of the 30's you have
> to remember that back then debt was denominated in dollars as good
> as gold. Deflation occurred because there was not enough "gold" around
> to pay off all the debts.
>
> The trick FDR played was to settle the debts with dollars and devalue
> the dollar against gold. The effect was that immediately, a large
> fraction of the debt was annihilated.

Deflation and the Treasuries Bubble

Some questions thrown out to the group here:
Doesn't inflation, on the way to deflation, spend some time in disinflation? Or has it already?
If we inflate our way out of debt, is it a good or bad thing?
Do the powers that be want inflation, disinflation or deflation?
Do they really have any influence over it,? Or is it the most gigantic Oz-like "man behind the curtain of all time?"
If it is what should we be in?
Inquiring minds want to know.

Obama Is Bad for the Economy - Barron's

Reagan completed the victory of the cold War. Carter had all but abandoned it. Bush II has begun the defeat of radical, murderous- fascist Islam, not to be confused with normal Islam, the religion of peace. Silent to other Islamist's deadly excesses though they are. The status we received by seeing the Cold war through helped set the stage for the great economy of the '90s. The class of '94 tax cuts didn't hurt either. Where are we now? We must be in need of higher taxes and more power concentrated in the hands of the 545. Or not?