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Originally Posted by wig
I made the point that deflation is at play, not hyperinflation. I supported that point by showing that the CRB has collapsed in conjunction with other asset classes. And, that since the original post in this thread, the US dollar has rallied substantially.
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How about how much value the dollar has lost in 2 years?
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Here is the pertinent part in case you missed it: "A reduction in the aggregate value of dollar-denominated debt is deflation, which is what we have going on now. At some point, the value of credit will contract to where it can be sustained by new production. When this happens, your scenario will be real."
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I've been into economics for a while and perhaps I misread this, but please explain how a reduction in dollar denominated debt is deflation? If anything, it is inflation reduces the value of the dollar and really, the debt related to the dollar.
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I made no comment about you having any losses, so don't get your panties in a twist. I was pointing out, in a general sense, backed by supporting data, the threat we are currently facing which is Deflation.
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Yea, you'll need to explain this because I'm not buying it.