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In response to:

How Does US Debt Stack Up Globally?

Chris339 Wrote: Oct 11, 2013 7:31 PM
Mish, I follow and agree with every article you write. I would raise 2 points. You say Bernanke doesn't want inflation, but under any other circumstances his QE would cause inflation...so he wants it...to a point: the point at which deflation ceases. Further, he knows there will be no inflation until there is velocity to the money supply, currently at an historic low. In addition, the US is in a liquidity trap....so Bernanke can print all he wants to combat the deflation. The deflation is caused by the reneging of debt (destruction of money) on loans. When the reneging stops and the velocity returns, won't that be the beginning of the inflation?
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