jds6958
November 7th, 2007, 10:02 AM
Contractions Only Dollars Apart
The Daily Reckoning
London, England
Tuesday, November 6, 2007
"....Ah, yes, they would try. But that is what we learned from Japan. Once a credit contraction begins, it is very difficult to reverse. The Japanese tried monetary policy - with a central bank lending rate of "effectively zero." And they tried fiscal policy - with the largest government deficits in the developed world. Still, prices fell.
Ben Bernanke has spent years studying the Japanese example. If we ever got in that sort of jamb, he says, he'd drop money from helicopters in order to break the contraction cycle.
We're a long way from there. So far, we seem to be only at the beginning of a credit contraction. The average person doesn't even feel it. When the squeeze begins, only the outer edges feel it first - the top and bottom of the credit structure.
But will it eventually involve everyone…and will the Bernanke Fed need to drop money from helicopters in order to get the economy moving again? Maybe… but then we'd really see the price of gold soar!"
read it carefully...Ben Bernanke would rather see hyperinflation than deflation by pumping more USD into the system..."
http://www.dailyreckoning.com/
nov. 6th article...
The Daily Reckoning
London, England
Tuesday, November 6, 2007
"....Ah, yes, they would try. But that is what we learned from Japan. Once a credit contraction begins, it is very difficult to reverse. The Japanese tried monetary policy - with a central bank lending rate of "effectively zero." And they tried fiscal policy - with the largest government deficits in the developed world. Still, prices fell.
Ben Bernanke has spent years studying the Japanese example. If we ever got in that sort of jamb, he says, he'd drop money from helicopters in order to break the contraction cycle.
We're a long way from there. So far, we seem to be only at the beginning of a credit contraction. The average person doesn't even feel it. When the squeeze begins, only the outer edges feel it first - the top and bottom of the credit structure.
But will it eventually involve everyone…and will the Bernanke Fed need to drop money from helicopters in order to get the economy moving again? Maybe… but then we'd really see the price of gold soar!"
read it carefully...Ben Bernanke would rather see hyperinflation than deflation by pumping more USD into the system..."
http://www.dailyreckoning.com/
nov. 6th article...