tag:blogger.com,1999:blog-2121490237517462736.post9123025491238006639..comments2024-02-20T01:52:53.299-08:00Comments on Futronomics: contrarian analysis of global macro trends, commodities, currencies, equities: Deflationary Forces Still Hard At WorkMatt Stileshttp://www.blogger.com/profile/17977694389453612864noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2121490237517462736.post-72362882749384233602009-12-31T14:55:00.802-08:002009-12-31T14:55:00.802-08:00Genial fill someone in on and this post helped me ...Genial fill someone in on and this post helped me alot in my college assignement. Gratefulness you as your information.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2121490237517462736.post-35742036476021011042009-10-31T17:52:49.826-07:002009-10-31T17:52:49.826-07:00I will do so Matt. I don't have much there re...I will do so Matt. I don't have much there recently, but I am working on a description of what deflation is and why we are already in it. We have a good bit of cash and I plan on buying some gold if it gets back to $680 as Prechter says. My experience in that metal has been the 1974 top and later bottom, where it fell to the 50% level. I have been expecting a bottom in the $500 to $550 range based on technical ranges and Gann ideas, like $500 and 50% levels and 2/3 retrace. Paper isn't going to survive this one, though cash will be the last to go.mannfm11https://www.blogger.com/profile/06507232690375884354noreply@blogger.comtag:blogger.com,1999:blog-2121490237517462736.post-49893036910021543992009-10-29T20:13:35.914-07:002009-10-29T20:13:35.914-07:00Barry,
Can you add an RSS feed widget to your bl...Barry, <br /><br />Can you add an RSS feed widget to your blog? Customize->Add a gadget->Feed<br /><br />I don't think Bernanke believes it either. He's been given an impossible task and has instead tried simply to manage confidence.Matt Stileshttps://www.blogger.com/profile/17977694389453612864noreply@blogger.comtag:blogger.com,1999:blog-2121490237517462736.post-63217983921582926032009-10-29T19:55:46.824-07:002009-10-29T19:55:46.824-07:00Nice piece. If you have read enough of my stuff, ...Nice piece. If you have read enough of my stuff, you have to have seen me raise all these issues. I fight this battle at least once a week on Wall street bear, which is strictly a gold bug, mostly inflation to the moon, stock bear site. Maybe I can add something to the stew about the printing money idea. As you well know, money only exists when banks make it available, as they don't need any money to lend money, only to pay other banks for their excess. This is what started this mess, interbank liabilities. In any case, you brushed right against it, the potential losses of the banks. This money does them no good because it is really nothing but an exchange of liabilities between the holder of a bond or mortgage and the Fed. Once done, the fed credit is the banks asset and the bond is the Fed's asset, the holder of the liability being switched. The money can be used to buy the bond if the bank so choose. But, capital is necessary to make a loan. If a bank needs to raise capital, it can only do so out of the money supply in the banking system, upon which the capital takes the form of a former bank deposit and the bank deposit ceases to exist. <br /><br />I venture that more than likely, the bank would then use the money or should I say Fed credit to reacquire the collateral the Fed took in for the money and the system would be somewhat restored. The big problem would be that fairly high powered money would have been absorbed from the money supply. But, the capacity of banks to make more loans would have been restored. This would be followed by the problem of who is a good credit risk. <br /><br />The problem of course is something that most cannot understand, that the level of debt is beyond repayment when one considers that spending without incurring more debt would also have to occur. If we misunderstand the implications of this, we will be wrong about deflation. I don't believe we are going to be wrong. Funny thing is I don't believe Bernanke believes it either.mannfm11https://www.blogger.com/profile/06507232690375884354noreply@blogger.com