tag:blogger.com,1999:blog-542518648627849085.post9029470835595291990..comments2024-02-11T06:00:30.938-07:00Comments on Skeptical Eye: The Bubble Economy BubbleNickhttp://www.blogger.com/profile/09991410496107221875noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-542518648627849085.post-712189895391246042009-02-22T04:23:00.000-07:002009-02-22T04:23:00.000-07:00The Obama-Geithner plan to restart the Bubble Econ...<I>The Obama-Geithner plan to restart the Bubble Economy’s debt growth so as to inflate asset prices by enough to pay off the debt overhang out of new “capital gains” cannot possibly work.</I><BR/><BR/>This is not <I>precisely</I> correct: their plan can "work" -- in a sense -- by inflating (creating a bubble) in the last commodity available: money. Look for a low of <I>monetary</I> deflation around mid-2009 and hyper-inflation of the currency near the end of 2009 or the beginning of 2010.<BR/><BR/>Asset price deflation in <I>real</I> terms (i.e. labor time) is inevitable, though.Larry Hamelinhttps://www.blogger.com/profile/08788697573946266404noreply@blogger.com