Quote:
Originally Posted by VA Pete
"US money supply plunges at 1930s pace as Obama eyes fresh stimulus
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This goes back to Grateful's prediction of deflation. It suggests that, despite stimulus, people are not spending - rather, they are holding on to their dollars. But a nation of debtors cannot abide deflation. In addition, when the economy restarts, the high money supply will suddenly develop increased velocity, resulting in a sudden shift to inflation.
Bottom line, the savings of the middle class are likely to be devastated.