Comments on: AIG Again http://www.economyguy.com/aig-again/ Economic News For Everybody....by Tom Harvey and Cyrus Uible Mon, 06 Feb 2012 20:08:23 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Tom Harvey http://www.economyguy.com/aig-again/comment-page-1/#comment-652 Tom Harvey Thu, 11 Dec 2008 16:46:11 +0000 http://www.economyguy.com/aig-again/#comment-652 Christine, Great point. You are speaking the unspeakable - that is why no where in the press is anyone talking about the government purposely pouring money into the economy, and not really caring where it goes. A deflationary spiral could easily happen in the US, and would make the Great Depression look like it is still here. Deflation is a reduction in the money supply, and that's what's happening all throughout the economy as the stock market and various banks fail. Money is going to money heaven. The FED and Treasury are pushing money into the economy as fast it can to stop the bleeding. Any how will this all end? It will end with an inflation - probably the worst inflation that the US has EVER seen. But when? Well, the inflation could start in 2009, or could be delayed (by an ever downward deflationary spiral) to 2010 or ever 2011. Tom Christine,
Great point. You are speaking the unspeakable – that is why no where in the press is anyone talking about the government purposely pouring money into the economy, and not really caring where it goes.

A deflationary spiral could easily happen in the US, and would make the Great Depression look like it is still here.

Deflation is a reduction in the money supply, and that’s what’s happening all throughout the economy as the stock market and various banks fail. Money is going to money heaven. The FED and Treasury are pushing money into the economy as fast it can to stop the bleeding.

Any how will this all end? It will end with an inflation – probably the worst inflation that the US has EVER seen. But when? Well, the inflation could start in 2009, or could be delayed (by an ever downward deflationary spiral) to 2010 or ever 2011.

Tom

]]> By: Christine Harvey http://www.economyguy.com/aig-again/comment-page-1/#comment-651 Christine Harvey Thu, 11 Dec 2008 02:46:41 +0000 http://www.economyguy.com/aig-again/#comment-651 Tom Can you talk about how the government may want to be injecting this money (ie AIG, auto industry, banks etc) in order to keep us from going into a serious deflationary period, thus this money NEEDS to be poured in, and explain why - if it is so. Thanks, christine Tom
Can you talk about how the government may want to be injecting this money (ie AIG, auto industry, banks etc) in order to keep us from going into a serious deflationary period, thus this money NEEDS to be poured in, and explain why – if it is so.
Thanks,
christine

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