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|Author: ||ryan foreman|
|Subject: ||RE: Are we actually slipping into a depression?|
The OP didn't ask if we are in a depression, just whether we are slipping into one. Its a very reasonable question even if you may disagree.
People don't seem to fathom that we are still running up trillion dollar deficits and the federal reserve continues to do radical stuff. They continue to set interest rates at or near zero for the long term. Quantitative Easing has only recently ended and it seems markets are still expecting more at some point. The government is effectively extorting people to spend their short term savings because inflation is now running out ahead of any interest they can earn in a bank. For all that, growth is amazingly mediocre. Its actually stunning how low inflation is in this environment. That should tell you there continues to be a relentless and massive deflationary force in this economy. And deflation + a lot of debt = depression.
People warn about inflation. But we have already had the inflation. Its called the past 40 years.
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