oldguywith beard

Own Gold? Time to Fold

Comparisons to Japan are not completely fair. The Japanese people had, and continue to have large amounts of savings. The US on the other hand, has enormous debts at all levels of society: state governments in trouble, mortgage and home equity loans failing, commercial credit starting to roll over, and a trade deficit that continues to persist at nearly three quarters of a trillion dollars per year. We simply can NOT allow deflation with this debt level. We must induce at least a small level of inflation to make debt service possible. Conclusion: the bailout will continue until we see inflation, but how much of it will we see?