bubba99, I think the kind of inflation they’re thinking of is the kind that stimulates growth. Otherwise it’s really devaluing the UD$ even more and we still get a recession/depression.
I think that’s essentially what the Japanese did in the 1990’s. Bury the problem. But I think it is a recipe for stagflation at best. And it’s probably what we’ll get except that we’re not nearly the exporter that Japan is. So it’ll be way worse for us.
The real problem, as I see it, is that credit has been destroyed. This forces everyone to consume at the level of their real wages. And real wages have not increased in at least 10 years. I think this may be the major part of Peter Schiff’s thesis that we are headed back to housing prices of the late 1990’s. Because that’s when the mortgage lending practices were realistic and sustainable.
I think that this time, the market cannot be denied.
