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View Diary: How much Stimulus is Needed? Estimate: $1T to $1.6T (22 comments)

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  •  1/2 agree (0+ / 0-)

    I agree, we need to fix the consumption/demand side of the equation.

    But I think the reason inflation will not be a problem is because of the money supply fixes you are most likely talking about tend to have less of an impact on inflation than is believed.

    I am repeating myself, and thats ok.

    by mickslam on Fri Dec 19, 2008 at 02:33:10 PM PST

    [ Parent ]

    •  I don't think so (1+ / 0-)
      Recommended by:

      The only reason we have so called "deflation" right now it's

      a) consumer is tapped out, they simply can't get more loan to go shopping.

      b) Every one of those crooks and scammers bankers need dollar liquidity to cover their lost bet.

      Once the global market snaps back into trading mode (eg. back to europe, asia and latin america) transaction...  people are going to releasing dollars.

      The reason dollars are strong right now is simply because all they have to settle all debt and bets. Everybody needs dollar to do it.

      There is no reason whatsoever why people in Asia, europe or latin america, let alone middle east experiencing dollar/credit crunch. Their books are in order.

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