The Alta Californian

Hey everybody!  We get to learn a brand new dance!  I call it “The Depression Two-Step”.
Here’s how it works:
Step 1:  Go to cash because virtually all asset prices will fall (high quality bonds are an exception.)  You could call this a bull market for cash since everyone needs it to operate a business or fund […]

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This inflation versus deflation debate has gone on long enough.  Here are my thoughts on the subject:
Bottom line: if you destroy tens of trillions (credit contraction), but only add trillions (govt. debt spending and Fed balance sheet), you absolutely must have deflation.
Someday, once asset prices have finished coming down (mostly), continued expansion of the money […]

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