[quote=Arraya] Money, banking and credit has changed very, very little over the past several decades and the outcome of an epochal credit collapse should not be that much different.
The way things add up now, it’s strong deflation leading to hypeinflation as the US will not be about to pay it’s debt or entitlements.[/quote]
Arraya, I learn a lot from your posts. I also been watching credit issue, however, my take is that they have been surely improved. The situation is not back at the pre crisis level, but it is now in a much less imminently dangerous situation, even when it rests on much government supports for its sustainability.
Unlike the great depression, this time the govt has diagnosed the problem correctly and has poured money from the beginning. Yes, by itself, all the printing may not be enough. But I see more and more signs that it has created an environment where capital could be attracted back into the new environment. IMHO, it may be that deflation will not be able to show up “strong” as you said, before we see inflation or hyper inflation. We may not see deflation before the tsunami of inflation coming ashore.
