Economists now unanimously agree that the US came perilously close to entering a devastating "deflationary cycle" during 2002 and 2003, and it was only because the Federal Reserve reduced interest rates to 44-year lows that a global economic crisis was averted. "We couldn't utter the 'D' word," one economist noted, referring to deflation, "because if we did that at the time it would have actually precipitated the deflation cycle to begin, and then we'd all have been royally fucked. We all knew it then, but we just couldn't say it." Another economist said "the American people, not to mention peoples of all countries, never knew the bullet they dodged by an inch." Mark my words. You'll see articles like this later.
probably true. with the US government upto its eyeballs in debt, the Federal reserve is printing money around the clock. whenever you print money around the clock you get inflation and also the dollar devalues, which it has. Bernake also stated a couple of years ago that we would be printing money to stave off deflation. we prevented deflation and are setting ourselves up for the lessor evil - inflation. time to buy commodities, foreign currencies and real estate[except on the coasts]
It's not the US government which is up to debt in its eyeballs, and printing money like crazy. It's Japan. That's where the huge global liquidity is made. The US could be in a significantly better position if it wanted to: stopping voluntary war.
can't wait to see which economist is quoted in a newspaper as having used the word 'fucked'. edit: but they couldn't use the 'D' word. hehe
US not printing money like crazy? If you call doubling the money supply since 1987 not printing money like crazy then I guess you are right. Will someone explain the difference between the Fed printing money and the Mafia counterfeiting money? I mean, I still get screwed because the Fed is not giving me the fresh money first.