Garya

Commodities Should Profit from the Bailout Plan

It is not certain that inflation will rule, however that is the goal of the government, to inflate our way out of this massive deflation. Yes they can coexist, because commodities can go up due to the weakening dollar while housing can continue to tank. There is going to be a massive increase in borrowing by the central government which should pump money into the system, keeping China afloat. They export stuff to us, we export credit to them. Credit is all we produce. The lack of borrowing by citizens will be offset some by government borrowing. The government will in effect, borrow FOR US.